US-based Cognizant has signed an agreement to acquire healthcare IT software and solutions provider TriZetto for $2.7bn in cash.

The acquisition will help Cognizant to expand the services to a wide range of healthcare clients. The combined companies will serve around 245,000 healthcare providers, with a revenue of about $3bn.

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The acquisition will also provide Cognizant with multiple industry-leading software platforms used by payers and providers, and will result in around $1.5bn of revenue synergies cumulatively over the next five years.

"The combination of Cognizant and TriZetto’s talented employees and innovative technology and operations will have a meaningful impact on the way health is managed and care is delivered."

Cognizant CEO Francisco D’Souza said: "Healthcare is undergoing structural shifts due to reform, cost pressure and shifting responsibilities between payers and providers.

"This creates a significant growth opportunity, which TriZetto will help us capture.

"We are excited that the integrated portfolio of capabilities across technology and operations will uniquely position us to help clients drive higher levels of operational efficiency, while re-imagining care for the future."

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TriZetto, which has around 3,700 employees, will merge in the Cognizant’s existing healthcare business.

Currently, the company provides services to around 200 clients, including 16 of the top 20 US plans and four of the top five pharmacy benefit management companies.

TriZetto president and COO Jude Dieterman said: "We believe the combination of Cognizant and TriZetto’s talented employees and innovative technology and operations will have a meaningful impact on the way health is managed and care is delivered."

Cognizant plans to finance the transaction through a combination of cash on hand and debt, and expects the deal to complete in the fourth quarter of this year.