Just when it looked as if players in the emerging healthcare ASP market were in the midst of various mergers, news that two separate merger agreements have stalled hit the wire.
The TriZetto Group, Inc. yesterday announced that its merger with IMS Health would not come to fruition. Instead, the two companies brought out the news of a strategic alliance.
Under terms of the alliance, TriZetto will acquire Erisco Managed Care Technologies, a IMS Health subsidiary, in exchange for 10.63 million shares of TriZetto stock, based on yesterday’s closing price of $24.00. The two companies will also enter a technology and data partnership.
The TriZetto Group (TZIX) and IMS Health will remain as separate independently traded companies. But TriZetto’s board of directors will include an IMS Health representative.
Jeffrey Margolis, chairman and chief executive officer, feels the two companies have formed a strong strategic relationship, and the acquisition of Erisco will extend the company’s ability to provide a wide selection of applications on a pre-integrated basis to its customers.
“TriZetto will maintain its vendor neutral approach to the market, generating revenue from Erisco through licensing and offering Erisco Facets and Facts on an ASP basis, together with out best-of-class third party offerings,” he said. “Erisco’s strong positive cash flow will fuel the growth of our ASP business.”
Also recently announcing a termination of merger agreements is B2B healthcare e-commerce services provider Neoforma.com (NEOF).
Neoforma.com was working towards a merger with Eclipsys and HEALTHvision, but announced this week that the three companies were in discussion regarding the possible halt of the merger.
All companies involved declined to further comment on the issues.