Cognizant acquires Trizetto for $2.7 bn
Audacious CEO D’souza bets on US healthcare opportunities in one of IT sector’s biggest recent deals
From page 01 BANGALORE: In the largest acquisition by an India-centric IT services company, Cognizant Technology Solutions is set to buy US-based TriZetto for $2.7 billion (`16,500 crore) from private equity firm Apax Partners in an all-cash deal.The deal announced on Monday will help the company tap lucrative US opportunities in IT for healthcare and edge closer to category leader Tata Consultancy Services in terms of revenue.
The deal puts the spotlight on its 46-year-old co-founder and CEO Francisco D’Souza, Nairobiborn son of an Indian diplomat.
“Healthcare is undergoing structural shifts due to reform, cost
pressure and shifting responsibilities between payers and providers.
This creates a growth opportunity, which TriZetto will help us capture,”
he said.
Though Nasdaq-listed $8.84-billion Cognizant has long since moved its headquarters from Chennai to New Jersey in the US, two-thirds of its 187,000 workforce and over half of its 75 delivery centres are in India and most of its leadership is of Indian origin.
Cognizant hopes this deal would help it gain advantage over its peers TCS, Infosys, Wipro and HCL for large outsourcing contracts from pharma, hospital and health insurance firms in the US.
DEAL DECODED
$8.84 bn
(`53,924 cr) Cognizant’s revenue in 2013
$13.4 bn
(`81,740 cr)TCS’ revenue during fiscal year 2013-14
Though Nasdaq-listed $8.84-billion Cognizant has long since moved its headquarters from Chennai to New Jersey in the US, two-thirds of its 187,000 workforce and over half of its 75 delivery centres are in India and most of its leadership is of Indian origin.
Cognizant hopes this deal would help it gain advantage over its peers TCS, Infosys, Wipro and HCL for large outsourcing contracts from pharma, hospital and health insurance firms in the US.
DEAL DECODED
$3 bn
(`18,300 cr) The combined healthcare revenue of Cognizant and TriZetto after the deal
245,350
No of healthcare providers and insurers that it will serve
$1.5 bn
(`9,150 cr) Revenue synergies over next 5 yrs that Cognizant
expects from the deal. The deal would immediately add to its adjusted
profit
(`18,300 cr) The combined healthcare revenue of Cognizant and TriZetto after the deal
245,350
No of healthcare providers and insurers that it will serve
$1.5 bn
$8.84 bn
(`53,924 cr) Cognizant’s revenue in 2013
$13.4 bn
(`81,740 cr)TCS’ revenue during fiscal year 2013-14
HEALTH FOR WEALTH
With the acquisition of TriZetto, Francisco D’Souza-led Cognizant has
only TCS ahead of it in revenue-based ranking of India-centric IT cos
NAME-RAJ GAURAV
PGDM 3 SEM
NAME-RAJ GAURAV
PGDM 3 SEM
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