TriZetto to acquire CareKey
The TriZetto Group Inc. this week announced plans to acquire CareKey Inc., a provider of advanced care management software. The acquisition is motivated by a desire by TriZetto's to broaden its offerings with an integrated portfolio of information technology products and services.
TriZetto's technology is currently used by nearly 100 million U.S. health plan members, and through joint work the companies see an opportunity to advance payers' capabilities to build stronger relationships with consumers.
"Advanced care management is one of the most significant growth opportunities we see in the market," said Jeff Margolis, chairman and CEO, TriZetto. "We believe payers are the most logical source to supply innovative health improvement programs and offer personal health records to their members."
TriZetto and CareKey have had a strategic relationship since December 2003. Since then, the companies' jointly developed product suite, CareAdvance Enterprise, has generated the greatest amount of new business contract bookings of any of TriZetto's component software products.
"Payers today are confronted with rising medical costs, increased member demand for control of their care, and growing employer price sensitivity," said Roy Schoenberg, MD, president, CareKey, in a release. "To better compete, health plans are partnering with members in making wellness decisions." Ido Schoenberg, MD, CareKey's CEO added, "With CareAdvance's unique automation capabilities, payers can leverage their existing IT infrastructure to bring personalized case, disease, utilization and population management services to their entire membership," he added.
The acquisition is expected to close in the fourth quarter of 2005 with aggregate consideration including $60 million in cash at closing, with additional contingent consideration of $40 million or more upon the achievement of certain future financial and other milestones, the companies said.
TriZetto's technology is currently used by nearly 100 million U.S. health plan members, and through joint work the companies see an opportunity to advance payers' capabilities to build stronger relationships with consumers.
"Advanced care management is one of the most significant growth opportunities we see in the market," said Jeff Margolis, chairman and CEO, TriZetto. "We believe payers are the most logical source to supply innovative health improvement programs and offer personal health records to their members."
TriZetto and CareKey have had a strategic relationship since December 2003. Since then, the companies' jointly developed product suite, CareAdvance Enterprise, has generated the greatest amount of new business contract bookings of any of TriZetto's component software products.
"Payers today are confronted with rising medical costs, increased member demand for control of their care, and growing employer price sensitivity," said Roy Schoenberg, MD, president, CareKey, in a release. "To better compete, health plans are partnering with members in making wellness decisions." Ido Schoenberg, MD, CareKey's CEO added, "With CareAdvance's unique automation capabilities, payers can leverage their existing IT infrastructure to bring personalized case, disease, utilization and population management services to their entire membership," he added.
The acquisition is expected to close in the fourth quarter of 2005 with aggregate consideration including $60 million in cash at closing, with additional contingent consideration of $40 million or more upon the achievement of certain future financial and other milestones, the companies said.