Apax’s TriZetto Group Buys Gateway EDI

Apax Partners’ portfolio company The TriZetto Group acquired ABRY Partners’ Gateway EDI, the firms revealed Wednesday. Harris Williams & Co. worked on the transaction, including Jeff Bistrong, Sam Hendler, Tyler Dewing and Nick Patel from Harris Williams & Co.’s tech, telecom and digital media team.

Harris Williams & Co. announces that The TriZetto Group (TriZetto), a portfolio company of Apax Partners (Apax), has acquired Gateway EDI (Gateway), a portfolio company of ABRY Partners (ABRY). The transaction closed on February 21, 2011. Harris Williams & Co. acted as the exclusive M&A advisor to TriZetto. The transaction was led by Jeff Bistrong, Sam Hendler, Tyler Dewing and Nick Patel from Harris Williams & Co.’s Technology, Telecom & Digital Media (TTDM) Group in Boston.

“TriZetto’s acquisition of Gateway has the potential to re-shape the revenue cycle within the healthcare industry by enabling real time claims adjudication across payers and geographies and providing unprecedented speed and transparency in the claims process,” said Jeff Bistrong, head of Harris Williams & Co.’s TTDM Group. “The combination of TriZetto and Gateway signals the next stage in the evolution of the healthcare IT industry, as payers and providers are increasingly leveraging technology to more efficiently deliver high quality care and manage operations,” added Sam Hendler, a vice president in the Group.

Founded in 1997, TriZetto is the leading privately-held healthcare information technology company to the healthcare payer industry, with its technology touching half of the U.S. insured population. TriZetto’s vision for the industry, Integrated Healthcare Management, is the optimized coordination of benefits and care for healthcare consumers to improve the value of every healthcare dollar spent. The company’s offerings include enterprise and component software, IT outsourcing services, business process outsourcing services and consulting that help payers transform and optimize their operations to enhance revenue growth, to drive administrative efficiency and to improve the cost and quality of care.

Apax Partners is one of the world’s leading private equity investment groups. It operates across the United States, Europe and Asia and has more than 30 years of investing experience. Funds under the advice and management of Apax Partners globally total around $40 billion. These Funds provide long-term equity financing to build and strengthen world-class companies. Apax Partners Funds invest in companies across its global sectors of tech and telecom, retail and consumer, media, healthcare and financial and business services.

Gateway is a leading independent provider of web-based revenue cycle management solutions to U.S. healthcare providers. Gateway’s subscription-based solution suite improves healthcare provider cash flow by managing, analyzing and optimizing critical areas of the revenue cycle value chain. Year after year, Gateway has achieved high performance and operational standards, such that 98% of all customer service calls are answered in person with 92% instant resolution.

Based in Boston, MA, ABRY is one of the most experienced and successful private investment firms in North America focused solely on media, communications, and business and information services investments. Since 1989, ABRY has completed over $27 billion of leveraged transactions and other private equity and mezzanine investments.

Harris Williams & Co. (www.harriswilliams.com), a member of The PNC Financial Services Group, Inc. (NYSE:PNC), is the premier middle market advisor with a two-decade legacy of M&A advisory excellence serving clients worldwide. The firm is focused exclusively on the middle market, providing sell side and acquisition advisory, restructuring advisory, board advisory, private placements and capital markets advisory services. The firm’s TTDM team focuses on software, IT services, communications and digital media. For more information on Harris Williams & Co.’s efforts in TTDM, contact Jeff Bistrong at +1 (617) 654-2102 or Thierry Monjauze at +44 207 518 8900.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, an Appointed Representative of Sturgeon Ventures LLP, which is authorized and regulated by the Financial Services Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business in the U.S. and Europe, respectively.