As per recent reports, Bain Capital, a Boston, Massachusetts-based private equity and venture capital firm, along with NY-based Blackstone Group, NY-based KKR & Co, Luxembourg-based CVC Capital Partners, Singapore-based GIC and Mauritius-based ChrysCapital are the 6 shortlisted candidates that are to proceed to second round of negotiation talks to acquire CitiusTech, a Princeton, New Jersey-based healthcare technology company.
The ongoing second round of negotiations could value the Princeton-based Citius at $900 million (Rs 6,235 crore), a never before deal that would allow General Atlantic (GA) to cash out its five-year-old investment in Citius.
Earlier, in Mar. 2014, NY-based GA made a $111.25 million investment in Citius, which provided GA a 32% stake in CitiusTech, while the remaining (approx. 68%) shares are held by founders Rizwan Koita and Jagdish Moorjani, and Citius’ employees. JP Morgan is the official sale process mediator.
Speculations are that GIC – Singapore’s sovereign wealth fund, plans on partnering with one of the other 4 shortlisted firms to proceed further on the process. Furthermore, ChrysCapital is also very likely to rope in one of its Canadian pension fund partners, like CPP Investment Board.
By doing their due diligence, these 5 shortlisted candidates are expected to forward their binding offers by the end of this month, following which the final decision can more likely be expected in the first half of July.
With founders likely to retain 20-25% stake in the company, along with managing its day-to-day business post-transaction, but it’s all still speculation, nothing concrete.
Citius, having a total employee strength of around 3,000, with centers in India, Singapore, the UAE, UK, and the US, reported $175 million in revenue with a 27-30% operating margin in fiscal 2019. The company largely focuses on providing cloud, analytics, and data management services. The company has a long list of impressive clientele which includes Geisinger Health, DaVita, and Centra Health.
“We have been growing at 25% annually over the last few years, so even if we continue to grow at this rate, we would reach our goal of becoming a $500 million company in five years,” stated Koita, CitiusTech CEO in an interview last year, in Nov. 2018.
Koita, who was the founder and CEO of Transworks BPO, which was purchased by the Birla Group in 2003, established CitiusTech in 2005 along with fellow IIT batchmate Moorjani.