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TriZetto Group, Inc. (Nasdaq: TZIX) fell 24 9/16 to 33 1/2 after the provider of Internet applications to the healthcare industry agreed to merge with pharmaceutical software company IMS Health (NYSE: RX) and form a new company with three separate units.
The companies said they willl be "the global leader in business-to-business e-healthcare information services" as they use Internet technology 
to provide integrated digital information and application services to healthcare clients worldwide. Together, they will have a market capitalization of about $90 billion and operate in more than 100 countries.
IMS Health shareholders will receive 0.4655 TriZetto shares for each of their shares, valuing the company at $27.03 per share. After the merger, the new company will issue three series of securities: IMS Health, representing IMS's pharmaceutical market research and sales management business; TriZetto, the application services provider and Internet portal business; and Strategic Technologies, which will be spun off to shareholders in a tax-free transaction.
"The Internet is transforming healthcare," said IMS Health Chief Executive Officer Victoria R. Fash. "Our vision is to leverage technology to enable information-based B2B e-commerce across the global healthcare system, ultimately advancing world health."
IMS Health closed at 16 1/2, down 5 1/8.
