Blackstone Group consortium to buy China’s Pactera Technology for $625 mn

A consortium led by US private equity firm Blackstone Group yesterday agreed to buy China's technology outsourcing company Pactera Technology International Ltd for $625 million.

The consortium comprising Blackstone Group, Pactera Technology's management that includes its non-executive chairman Chris Chen, CEO Tiak Koon Loh and other senior managers, have offered to pay $7.30 per American Depositary Share (ADS) in cash, an 11.6 per cent premium to the stock's yesterday closing price of $6.54.

The consortium had initially offered $7.50 per ADS in May but reduced that to $7 last month, due to the company's weakening financial performance.

Listed on the Nasdaq Stock Exchange, Beijing-based Pactera was formed last year through a merger of equals between HiSoft Technology International and VanceInfo Technologies Inc.

Pactera is a global consulting and technology services provider offering business / IT consulting, solutions, and outsourcing services to a wide range of leading multinational firms through a globally integrated network of onsite and offsite delivery locations in China, the US, Europe, Australia, Japan, Singapore and Malaysia.

Its clients include Fortune 500 companies spanning many industries in the financial services, technology, telecommunications, travel and transportation, energy, life sciences, manufacturing and retail and distribution sectors.

Based on the unanimous recommendation of the company's special committee, Pactera's board of directors has approved the transaction and has recommended that its shareholders vote to approve the deal.