Private Equity Firm Expands Portfolio with Health Care Software Firm

Another private equity firm is expanding its healthcare portfolio by adding a company that specializes in health plan payer-focused software.

TriZetto Group (Nasdaq: TZIX) said late Monday that its shareholders approved a $1.4 billion takeover by Apax Partners LP, a global private equity fund that invests on behalf of public and private funds, insurance companies, university endowments and other financial institutions. The deal gives TriZetto shareholders $22 a share in cash.

Apax offered to buy TriZetto of Newport Beach, Calif., in April but the deal was stalled when some shareholders filed a class action lawsuit over the stock-only portion of the deal, which was settled last week.  

TriZetto has said it wants to go private to focus on longer term goals. Apax, for its part, sees software technology redefining healthcare operations.

"TriZetto represents a unique asset with a tremendous opportunity to drive positive changes in organized systems of healthcare, both in the U.S. and abroad,” Buddy Gumina , an Apax partner and head of U.S. healthcare said in a press release. “We look forward to helping the company accelerate the realization of its vision, and we are delighted to have the investment participation of two of TriZetto’s key customers who have had a long history in working with the company and recognizing the strategic importance of IT as a critical component of adapting to the needs of the rapidly evolving healthcare landscape."

Trizetto said BlueCross BlueShield of Tennessee and The Regence Group, both customers of TriZetto, will help fund the deal and become equity investors in the newly private company.

RBC Capital Markets is the exclusive debt underwriter on the deal. Deutsche Bank Securities served as the exclusive financial advisor to Apax Partners. BlueCross BlueShield of Tennessee and Regence were advised by Cain Brothers and Company. UBS Investment Bank served as the exclusive financial advisor to TriZetto.