Apax Partners / BCBS TN / The Regence Group
for $22.00 per share
in a going private transaction, for a total value of $1.4 billion(1)
Cain Brothers acted as Financial Advisor to BlueCross BlueShield of Tennessee
and The Regence Group
On April 11, 2008, The TriZetto Group, Inc. (NASDAQ: TZIX) announced that it has entered into a definitive
agreement to be acquired and taken private by Apax Partners (“Apax”), a global private equity firm with over $35
billion in funds under advice. The transaction closed August 4, 2008.
Shareholders will receive $22.00 per share in cash, valuing the transaction at approximately $1.4 billion
Purchase price implies a 29% premium over the 30 calendar-day average closing price
BlueCross BlueShield of Tennessee (“BCBST”) and The Regence Group (“Regence”), both customers of TZIX, are
providing a portion of the funding for the transaction and will be equity investors in the newly private company
The structure pairs a world-class private equity firm with two not-for-profit managed health care plans,
providing minority equity ownership for BCBST and Regence
This is one of the largest leveraged buyouts to be announced since the credit markets turned last summer
Cain Brothers’ Role
Worked collaboratively with the entire investor group to develop a successful transaction structure and strategy
Served as an M&A and financial advisor to BCBST and Regence
Supported and assisted BCBST and Regence in their communication planning and implementation
Transaction demonstrates Cain Brothers’ deep domain knowledge in the managed care and HCIT sectors, its
commitment to senior level, relationship-oriented client service and “out-of-the-box,” value-added thought processes
About The TriZetto Group, Inc.
TriZetto is Powering Integrated Healthcare Management™. With its technology touching nearly half of the U.S.
insured population, TriZetto is uniquely positioned to drive the convergence of health benefit administration, care
management and constituent engagement. The company provides premier information technology solutions that
enable payers and other constituents in the healthcare supply chain to improve the coordination of benefits and care
for healthcare consumers. Healthcare payers include national and regional health insurance plans, and benefits
administrators that provide transaction services to self-insured employer groups. The company's payer-focused
information technology offerings include enterprise and component software, hosting and business process
outsourcing services, and consulting.
(1) Includes consideration for stock options and shares related to TriZetto’s outstanding convertible notes.
Certain activities and services referred to in this case study are provided by Cain Brothers & Company, LLC. This communication is a case study for our corporate clients and does
not constitute professional advice or services.