Cognizant Shares Tumble on Possible End of Health Net Contract
This article is for subscribers only.
Cognizant Technology Solutions Corp. fell the most in almost a year after the company said a $2.7 billion services contract with Health Net Inc. was likely to be canceled if the health insurer is bought by Centene Corp.
Centene announced Thursday that it would buy Health Net for $6.3 billion, in what could be the first in a series of deals in the U.S. health insurance industry. Cognizant said a merger will cause overlaps in the services it provides, and cause Health Net to cancel a seven-year agreement that was to begin this year.