TriZetto Group Inc., a Newport Beach-based medical information technology company, said Friday it’s being bought for $1.4 billion by Apax Partners Inc., a private equity investor.
Shareholders of TriZetto are set to get $22 for each share of common stock, a 25% premium from where the stock closed on Thursday.
The deal is valued at $1.4 billion.
TriZetto provides software and services to health plans and benefits administrators.
Apax is a private equity firm that invests in various sectors, including healthcare. Its headquarters are in New York.
Going private allows TriZetto to accelerate its software development investments, Chief Executive Jeff Margolis said in a statement.
The company’s shares were up 15% on a market value of $872 million in late morning New York trading.
A pair of TriZetto customers, BlueCross BlueShield of Tennessee and the Regence Group, a Portland, Ore.-based health plan, are providing some of the funding for the deal and will be investors in the private TriZetto.
TriZetto said its board already has approved the deal and that closing should take about four to six months. The company also said it didn’t foresee significant changes to its product line, staffing or facility locations.
