CVC Capital Partners plc (ENXTAM:CVC), Advent International, L.P., Carlyle (The Carlyle Group Inc. (NasdaqGS:CG)) and Temasek (Temasek Holdings (Private) Limited) are among private equity firms evaluating the acquisition of EQT Partners' 40% stake in healthtech firm CitiusTech Inc. in a potential deal likely at around $1 billion, three people familiar with the matter said. Others such as Ontario Teachers' Pension Plan Board (OTPP) and Blackstone (Blackstone Inc. (NYSE:BX)) are also evaluating the asset, two of the three people cited above said on the condition of anonymity. The people added that JP Morgan is conducting the sale process.
"While no bids have been placed, the process has been initiated to gauge market interest even as the IT services industry undergoes a challenging time," a third person said, adding that the deal is still in early stages and the contours are still being decided. The development comes against the backdrop of a consolidation in the broader IT services space, which has seen various mergers and acquisitions in recent times. The move further underscores the company's plans to explore various acquisitions to establish its market presence ahead of a planned public listing in the near term.
Blackstone, EQT, JP Morgan, Carlyle and Temasek declined to comment, while emails sent to Citius Tech, CVC, Advent, and OTPP did not elicit a response till the time of publishing.
