A Blackstone-led consortium has sealed a deal to buy Nasdaq-listed Pactera Technology International, a China-headquartered consulting and technology services provider, for about $600 million.
Pactera shareholders will receive $7.30 a share, a premium of 39% over the closing price of $5.26 per ADS on May 17 - the day before Pactera first said it had been approached by the Blackstone-led consortium.
The take-out price has wavered during negotiations and fell as low as $7 in September after Pactera issued a full-year profit warning.
The news came as Blackstone released its third-quarter earnings results, up 3% year-on-year and assets under management hit a record high of $248 billion.
Stephen Schwarzman, Blackstone’s chairman and chief executive, said in Hong Kong last October that China’s economic slowdown was creating opportunities to invest.
Blackstone has also been buying other Chinese companies. In August the group agreed to buy Hong Kong-listed property and construction group Tysan Holdings - which owns real estate in mainland China - for US$322.6 million.
The US group has been particularly active in buying property across Asia. It has already made investments in Shanghai, Dalian, Nantong and Wuhan. In one deal Blackstone bought Shanghai’s Huamin Imperial Tower, which has 50,000 square meters of office space.
The consortium buying Pactera comprises Blackstone, Pactera’s non-executive chairman Chris Chen, chief executive officer Tiak Koon Loh and other senior managers as well as GGV Capital.
The deal is conditional on approval by at least two-thirds of shareholders.
Bank of America Merrill Lynch, Citigroup and HSBC are financing the deal. Citigroup is advising the consortium.