Blackstone Proposes To Take Pactera Technology Private With Company Management

NASDAQ-listed Chinese consulting and technology services provider Pactera Technology International says it has received a non-binding proposal from a group of investors to take the company private for US$680.3 million.

The buyer group includes the Blackstone Group, and several members of Pactera’s management team, including non-executive chairman Chris Chen, CEO Tiak Koon Loh and its executive committee members, David Chen, Sidney Huang and Jun Su.

The go-private deal calls for the buyer group to pay US$7.50 per American Depositary Share (ADS) in cash. Pactera shares surged to US$6.76 in today’s trading.

The deal will be financed with a combination of equity capital funded by the buyer group and debt provided by third-parties.

Pactera says no decisions have been made on how the company will response to the proposal.

Pactera is formed by a merger of equals between HiSoft Technology International Limited and VanceInfo Technologies. It is China’s largest technology outsourcing company with presence in China, the U.S., Europe, Australia, Japan, Singapore and Malaysia.