NEWPORT BEACH, Calif. – The TriZetto Group Inc., a provider of information to the health-care industry, went public October 8, offering 4.2 million shares at $9 apiece. The company’s stock priced well below its $11 to $13 filing range.
Underwritten by Bear, Sterns & Co. Inc., Donaldson, Lufkin & Jenrette, Adams, Harkness & Hill Inc. and Wit Capital Corp., the initial public offering left 19.7 million shares of stock outstanding.
There was one selling shareholder who sold 350,000 shares of stock. Venture backers included Delphi Ventures, Fidelity Ventures, HLM/UH Fund and KFS Management Inc.
The TriZetto Group provides clients with subscription-based access to software applications, network connectivity services, and information access and reporting services through standard or Internet-based virtual networks.
The company plans to use the estimated $31.2 million generated from the IPO for sales and marketing, application services, Internet technologies, working capital and for general corporate purposes. The company also might use a portion of the proceeds to acquire or invest in complementary businesses, products, services or technologies.
The TriZetto Group earned $32,000 in the six months ended June 30, 1998, but lost $727,000 in the six months ended June 30, 1999.
Donald Lothrop, a general partner at Delphi, and Peter Mann, a vice president at Fidelity, both joined the company’s board of directors in April 1998.
The TriZetto Group – Selected Financial
(in thousands, except per share data)
Year Ended Nine Months Ended May 27, 1997 Year Ended Six Months Ended June 30
Dec. 31, 1996 Sept. 30, 1997 to Dec. 31, 1997 Dec. 31, 1998 1998* 1999
Total revenue 5,088 3,881 2,519 11,431 5,053 12,709
Net loss -2,442 -1,212 103 60 32 -727
Net loss per share 0.05 0.01 0.01 -0.12