Cognizant has entered into a definitive agreement to acquire the US based TriZetto in (brace yourselves) an all cash deal which is valued at $2.7 billion(nearly 16,500 cr).
The offshore-centric, Indian IT services company, Cognizant, is all set to create the most expensive acquisition till date. The company is trying to strengthen its leadership in the Healthcare and Technology space.
Trizetto is a significant player in the Health care segment in the United States with a reported revenue of over $650 million for the year of 2013. It serves over 200 clients including 16 of the top twenty US health plans.
This deal was supposedly being funded through a combo of cash and debt but according to a recent statement issued by the company, they have reportedly secured $1 billion of financing support for the take over.
According to the Cognizant president, Gordon Coburn:
Cognizant and TriZetto have had a long-term relationship, having jointly served a number of healthcare clients to date. This acquisition is a natural fit for us. It represents a great opportunity to integrate services across our three horizons – traditional IT services; high-growth businesses like management consulting, business process services and IT infrastructure services; and emerging delivery models – and provide even greater value to our clients.
This acquisition will further increase Cognizant’s grip on the segment leaving behind the major competitors like Wipro, Infosys, TCS etc.