Deal to bolster firm’s position in healthcare IT. In what could strengthen its leadership in the healthcare technology space, Nasdaq-listed information technology (IT) services company Cognizant has entered into a definitive agreement to acquire US-based TriZetto in an all-cash deal valued at $2.7 billion (around Rs 16,510 crore).
According to experts, while the valuation of TriZetto looks “quite inflated”, such a valuation is not uncommon in the products and platform space for a company targeting a niche segment. “If Cognizant was paying such a high valuation for a pure-play services company, it would have been worrisome. But a four to five times valuation for an intellectual property (IP) -related company in the US is normal,” said Sanchit Vir Gogia, chief analyst at Greyhound Research. “I think it is a very good acquisition for Cognizant.”
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