Under the terms of the agreement, the London-based Apax will pay $22 per TriZetto share, a 29 percent premium over the 30-day average closing price of the company's stock.
The board of directors of the Newport News, Calif.-based TriZetto has approved the transaction, which is subject to customary closing conditions, including shareholder and regulatory approvals. TriZetto said the closing is expected to occur in the next four to six months.
BlueCross BlueShield of Tennessee and healthcare company The Regence Group, both of whom are TriZetto customers, are also providing a portion of the funding for the transaction and will be equity investors in the newly private company.
“We see the confluence of healthcare and IT as a key area of focus for strategic investments,” said Buddy Gumina, a partner and head of U.S. healthcare at Apax.
“TriZetto represents a unique asset with a tremendous opportunity to drive positive changes in organized systems of healthcare, both in the United States and abroad.”