Cognizant buying TriZetto for $2.7 billion
Cognizant will buy the health care software company TriZetto for $2.7 billion in cash.
The information technology consulting and outsourcing company is expecting the acquisition to significantly accelerate its market position. Health care currently makes up about 26 percent of Cognizant's revenue.
Company President Gordon Coburn said that the deal will provide an opportunity to integrate across traditional IT services; high-growth businesses such as management consulting, business process services and IT infrastructure services and emerging delivery models.
The Teaneck company plans to finance the transaction with available cash and debt. It is expected to close in the fourth quarter and immediately add to earnings.
Shares of Cognizant Technology Solutions Corp. rose $1.33, or 3 percent, to $46.09 in premarket trading.
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