Blackstone tables $660m take-private bid for China’s Pactera
The Blackstone Group has joined the flood of private equity firms targeting China take-privates, backing a management buyout of US-listed tech outsourcing firm Pactera Technology International. It takes the number of private equity-supported transactions of this nature to 19, of which 12 are still in progress.
According to a regulatory filing, a consortium comprising Blackstone and several members of Pactera's management team, have offered to pay $7.50 for all outstanding American Depository Receipts, valuing the company at around $660 million. This represents a 42.6% premium to Pactera's Friday closing price on NASDAQ.
The transaction will be financed through a combination of equity capital and third-party debt.
Pactera was formed last year through a merger between HiSoft Technology International and VanceInfo Technologies. GGV Capital holds a 7% stake in the firm, while management controls around 10%.
Pactera provides business and IT consulting and outsourcing services to a range of multinational clients through a network of locations in China, the US, Europe, Australian, Japan, Singapore and Malaysia. The company reported a net income of $3.3 million in 2012, down from $18.4 million the previous year as a substantial jump in revenue - from $223.1 million to $358.6 million - failed to offset rising costs.
Last week, Chinese telecom software provider AsiaInfo-Linkage accepted a take-private offer from CITIC Capital Partners that values the company at approximately $890 million. It was the seventh PE-backed take-private of a US-listed Chinese company to receive board approval so far this year.
More on Buyouts
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.