Blackstone completes take-private of China's Pactera

According to a regulatory filing, the deal has received shareholder approval and Pactera has been delisted.

Company management and existing investor GGV Capital rolled over their shares into the acquisition vehicle. Exiting investors received $7.30 per American Depository Share. The initial offer was $7.50 per share but this was reduced to $7.00 in September after Pactera revised downwards its revenue and earnings projections for 2013. They eventually compromised at $7.30 per share.

As of January, GGV and company management - led by Chris Chen, the non-executive chairman, and Tiak Koon Loh, the CFO - between them held an 11.4% interest in the business. Other significant shareholders included DNB Asset Management and Pentwater Capital Management.

The transaction will be supported through a debt package arranged by Bank of America Merrill Lynch, Citigroup and HSBC.

Pactera was formed through a merger between HiSoft Technology International and VanceInfo Technologies. The company 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.

It reported a net income of $7.8 million in 2013, up from $3.3 million the year before, although still substantially down on the 2011 figure of $18.4 million. Revenue for 2013 was $672.8 million, up from $358.6 million the previous year.

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• Topics
• Buyouts
• Greater China
• Technology
• China
• Technology
• The Blackstone Group
• buyout
• GGV Capital