TriZetto and IMS Health Join Forces
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The TriZetto Group, Inc. and IMS Health announced this week a strategic merger that is expected to create a global leader in the B2B eHealthcare information services arena.
Healthcare ASP The TriZetto Group, Inc. hosts software for a monthly fee through HealthWeb, its Internet portal. Information solutions provider to the pharmaceutical industry IMS Health operates in over 100 countries.
According to Lu Kabir, senior vice president business development, The TriZetto Group, Inc., the new company will keep the TriZetto group name. "This merger is similar to the AOL-Time Warner deal but we are keeping the companies separate from a financial angle," he said.
The new company will use Internet technology to provide integrated, digital health information and application services to participants in the healthcare community such as healthcare providers, payors and pharmaceutical companies through HealthWeb
"The whole merger is not about cost cutting," Kabir said. "The integrated management team will be a combination of new blood and the rock solid teams already in place at IMS and TriZetto." Kabir said no layoffs are anticipated.
Financial details of the merger call for IMS Health (RX) shareholders to receive 0.4655 shares of TriZetto(TZIX) for each IMS Health common share. Based on TriZetto's opening share price today, the transaction currently values IMS Health at $14.19, a significant decrease since the market close on Monday when TriZetto was at $62 and IMS hit $22.