Hosting and business process outsourcing services firm TriZetto has entered into an agreement to be acquired and taken private by funds advised by Apax Partners growth-focused, global private equity firm.

"The achievement of TriZetto's Integrated Healthcare Management vision is a multi-year journey that will require both conventional and non-conventional business investment within an integrated framework. Payers are in the best position to lead the way towards fundamental industry improvements, and our technology solutions are essential in supporting that transformation. Apax Partners, which shares our strategic view of the marketplace, provides an outstanding opportunity to accelerate solutions development investments on behalf of our payer customers to create an integrated linkage among consumers, providers, employers and brokers," said Jeff Margolis, Chairman and CEO of TriZetto.

With $35 billion in funds under advice and significant expertise in healthcare and technology, the terms of the agreement plan a merger, and TriZetto shareholders will receive $22.00 per share in cash, representing a 29% premium over the 30 calendar-day average closing price of the company's stock. The transaction is valued at approximately $1.4 billion, including consideration for stock options and shares related to TriZetto's outstanding convertible notes. BlueCross BlueShield of Tennessee and The Regence Group, both customers of TriZetto, are providing a portion of the funding for the transaction and will be equity investors in the newly private company.

TriZetto's Board of Directors approved the transaction, which is subject to customary closing conditions, including shareholder and regulatory approvals. Closing is expected to take between four and six months. The company does not anticipate any material changes in its product offerings, staffing or facility locations as a result of this change in ownership.