TriZetto IPO Raises $35 Million
Newport Beach-based TriZetto Group Inc. said Thursday that it raised about $35 million in its initial public offering.
The company, which provides data processing services to the health care industry, sold 4.2 million shares at $9 apiece, down from the $11 to $13 range it had hoped for.
“We’re breaking new ground here, and it’s a bit of a challenge for investors to understand,” said Jeff Margolis, TriZetto’s chief executive and president.
In addition to data processing services for doctors and HMOs, the company provides consulting services and has created a portal called HealthWeb, where customers exchange information and conduct business with TriZetto.
TriZetto plans to use the proceeds for sales and marketing, research and development, acquiring more software licenses and expanding into new locations.
Former Chairman Raymond D. Croghan sold 350,000 shares in the offering, garnering $3.15 million.
Founded in 1997, TriZetto has 300 employees and revenue of $12.7 million in the six months ended June 30, more than double the same period a year before. The company lost $1 million in the period, compared with a $32,000 profit a year earlier.
The company stock will begin trading on the Nasdaq National Market today under the ticker symbol TZIX. (Marc Ballon)
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