Cognizant Technology Solutions Corporation · NASDAQ:CTSH
Cognizant Technology Solutions — Merger or Acquisition (September 2014)
16 slides from Cognizant Technology Solutions's merger presentation, Sep 15, 2014
Slide 1: Cognizant to Acquire TriZetto
COGNIZANT TO ACQUIRE TRIZETTO September 15, 2014 © 2014 Cognizant © 2014 Cognizant
Slide 2: Today's Presenters
Today’s Presenters Francisco D’Souza Gordon Coburn Karen McLoughlin Jude Dieterman CEO President CFO President and COO of TriZetto 2 © 2014 Cognizant
Slide 3: Safe Harbor
Safe Harbor This presentation includes statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 including with respect to the consummation of and financing for the acquisition of TriZetto, the timin
Slide 4: What we are announcing today
What we are announcing today • Cognizant to acquire TriZetto • TriZetto is a leading provider of healthcare software and solutions Transaction • Purchase price of $2.7 billion in cash, subject to customary adjustments • Closing anticipated in Q4, subject to customary closing conditions • Creates a f
Slide 5: Healthcare today: innovation + structural change
Healthcare today: innovation + structural change • Significant portion of US economy • $2.7 trillion annual healthcare spend • Rapidly Expanding Service and Technology Market • Affordable Care Act and growth in Medicare and Medicaid • Emerging Opportunities • Provider groups becoming risk bearing en
Slide 6: TriZetto at a glance
TriZetto at a glance • Software and solutions addressing the needs of all Revenue by Client key segments of the healthcare value chain 20% Payer • Payers: core administration solutions for ~350 payers 80% Provider with 180 million covered lives • Providers: SaaS-based revenue cycle management Revenu
Slide 7: Complementary capabilities and a shared vision
Complementary capabilities and a shared vision • Clients are demanding Process People integrated solutions at a lower cost • “As-a-service” delivery platform for payers and providers • Enhances our competitiveness Systems Data in important integrated deal opportunities 7 © 2014 Cognizant
Slide 8: Creating an integrated healthcare leader
Creating an integrated healthcare leader Cognizant today TriZetto is highly complementary 16 of 4 of 28 of • Payer software and solutions top 20 top 5 top 30 • #1 in private enterprises US Health US Pharma • #1 in fast-growing government Plans PBMs companies programs • Provider RCM solutions 9 of 12
Slide 9: Integrated stack for the healthcare industry
Integrated stack for the healthcare industry Cognizant TriZetto Healthcare Combined Consulting BPS SI / Applications Software / IP Hosting / Infrastructure 9 © 2014 Cognizant
Slide 10: Key healthcare constituencies supported
Key healthcare constituencies supported Payers Providers • Health plans • Hospitals • Health insurers • Health systems • Third-party administrators • Physicians • HMOs • Pharmacists • Dentists • Optometrists Consumers Financers of Care • Health plan members • Employers • Enrollees • CMS • Beneficiar
Slide 11: Payer solutions overview
Payer solutions overview Contract for care, model provider contracts, service providers Manage / authorize care to be provided to members Adjudicate claims Payers Send enrollments Providers and premium Accept payments for enrollments covered members Customer and benefits service; care management; di
Slide 12: Provider solutions overview
Provider solutions overview Validate payment accuracy and automate appeals Receive payment for claims submitted & post to PM system Payers Providers Collect and post patient payments Issue patient bills / statements / eStatements Consumers 12 © 2014 Cognizant
Slide 13: Cognizant and TriZetto have a long-standing relationship
Cognizant and TriZetto have a long-standing relationship • Rich experience providing end-to-end consulting, implementation, configuration, operations and maintenance services • Cognizant has a significant talent pool of IT and business expertise on TriZetto platforms • 1,200+ TriZetto-experienced re
Slide 14: Approximately $1.5+ billion potential revenue synergies cumulatively over next 5 years
Approximately $1.5+ billion potential revenue synergies cumulatively over next 5 years $500M – Integrated deal opportunities $1B Impact IT IS / Hosting $300 – $400M Payer BPS / Provider RCM $200 – $300M Systems Integration $200 – $300M Time 14 © 2014 Cognizant
Slide 15: Balance sheet and capital allocation
Balance sheet and capital allocation • Transaction financed with cash on hand and debt Balance • $1 billion transaction financing commitment in place Sheet • Long-term financing expected to be in place at closing or shortly thereafter • Significant financial flexibility with ample liquidity post-clo
Slide 16: © 2014 Cognizant
(a Cognizant AMTRIZETTO Cognizant
Cognizant Technology Solutions — Merger or Acquisition (September 2014) on 6ix