In its biggest deal ever, New Jersey-based Cognizant Technology Solutions has agreed to buy Colorado health-care IT services provider TriZetto for $2.7 billion.

An information technology, consulting and business process outsourcing company, Cognizant also provides claims processing, billing solutions and call center operations to insurers, hospital and health-care exchanges established under the Affordable Care Act.

Cognizant’s acquisition of TriZetto from private equity firm Apax Partners could boost revenue for the company’s sluggish health-care business. According to Reuters, TriZetto, whose services include care management and administration of benefits,  reaches 245,000 health-care providers, “representing more than half of the insured population in the United States.”

The newswire notes that Cognizant’s revenue for its healthcare division dropped considerably in the last three quarters. In fact, in August, the company forecast its slowest full-year sales growth in its 20-year-history.

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.”

Investors initially greeted the news positively as Cognizant’s shares jumped almost 3% in Monday’s pre-market trading session. But by 4 p.m. on Monday the stock was down 1% from Friday’s close.

Cognizant anticipates revenue synergies of $1.5 billion the next five years as a result of the deal, which is expected to close in December. The company has secured $1 billion in financing and will pay a combination of cash and debt for TriZetto.

Source: Reuters Cognizant to buy TriZetto to boost healthcare business