Apax Partners will sell its stake in TriZetto Corporation to Cognizant Technology Solutions in a $2.7 billion all cash deal. Apax first acquired TriZetto in 2008 for $1.4 billion, alongside minority investors and customers of TriZetto, BlueCross BlueShield of Tennessee and Cambia Health Solutions. Both companies are also selling their stakes to Cognizant.
Apax declined to comment on the transaction, which is expected to close in the fourth quarter.
Sources familiar with the transaction say the original investment came from Apax’s Europe VII fund, a 2007 vintage and Apax US VII, an $856.3 million 2006 vintage.
TriZetto provides health IT and software solutions in North America.
Apax Partners has invested approximately $5.7 billion in healthcare and $2.3 billion in enterprise software buyouts to date. In addition to TriZetto, its healthcare investments include One Call Care Management, Align Networks, and Genex.
The firm also recently exited investments in Advantage Sales & Marketing, and Travelex. In August, Apax acquired Answers Corporation, the parent company of Answers.com from Summit Partners, TA Associates, and founder shareholders.
J.P. Morgan Securities LLC and Goldman, Sachs & Co. served as financial advisors to TriZetto and Kirkland & Ellis LLP is acting as legal advisor. Cognizant was advised by Credit Suisse, UBS Securities LLC and Centerview Partners. Legal counsel to Cognizant was provided by Latham & Watkins LLP and Nishith Desai.
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