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Apax in $1.4bn US take-private

Joined by BlueCross BlueShield, the mega-buyout firm will pay $22 per share for TriZetto, a healthcare software company.

Apax Partners has agreed to a $1.4 billion (€885 million) take-private for healthcare software company TriZetto.

The London-based mega-buyout firm will pay $22.00 per share in cash, representing a 29 percent premium over TriZetto’s 30-day average. At the time of posting, the Southern California-based company was trading at $20.35, up 15 percent on news of the acquisition.

“We see the confluence of healthcare and information technology as a key area of focus for strategic investments,” Buddy Gumina, a partner and head of US healthcare investments at Apax, said in a statement.

BlueCross BlueShield of Tennessee and The Regence Group, a conglomerate of BlueCross firms in the Pacific Northwest, have agreed to provided a portion of the funding for the transaction and will be equity investors in the new private company.

Apax, which manages roughly $35 billion in funds, has been particularly proactive in the international healthcare sector, investing over $2.8 billion in the industry worldwide from 1989 to 2007.

Last September, Apax purchased Qaulitest and Vintage Pharmaceuticals, an Alabama-based distributor and manufacturer of generic pharmaceuticals.

NASDAQ-listed TriZetto specialises in offering core administrative software to health care providers and insurers.

Founded in 1997, the Newport Beach business serves more than 100 million health plan members through its customers, and employees a staff of 1,850.