By Lisa Kerner
Charlotte, N.C., April 11 - TriZetto Group, Inc. agreed to be taken private by funds advised by Apax Partners for $22 per share, or some $1.4 billion, a joint company news release stated.
The offer price is a 29% premium over the 30 calendar-day average closing price of TriZetto's stock.
BlueCross BlueShield of Tennessee and the Regence Group, both TriZetto customers, are providing a portion of the funding for the transaction and will be equity investors in the newly private company, the release said.
TriZetto's board of directors approved the transaction, which is expected to close in four to six months.
A $50 million termination fee is included in the companies' merger agreement.
RBC Capital Markets is the exclusive debt underwriter on the deal. Deutsche Bank Securities advised Apax Partners, a private investment group, and UBS Investment Bank advised TriZetto.
TriZetto develops, licenses and supports proprietary and third-party software products for the U.S. health-care industry. The company is based in Newport Beach, Calif.
| Acquirer: | Apax Partners
|
| Target: | TriZetto Group, Inc.
|
| Announcement date: | April 11
|
| Transaction total: | $1.4 billion
|
| Price per share: | $22.00
|
| Termination fee: | $50 million
|
| Expected closing: | In four to six months
|
| Stock price of target: | Nasdaq: TZIX: $17.67 on April 10
|
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