Unlock the Editor’s Digest without spending a dime
Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly publication.
Temasek and Warburg Pincus are getting ready to place healthcare provide chain administration firm International Healthcare Change up on the market, aiming at a valuation of virtually $5bn, based on individuals conversant in the matter.
GHX, during which the Singaporean government-backed funding fund owns a majority stake and the US private equity group the rest, was working with advisers on a sale course of, which may end in a partial or full- stake sale, the individuals mentioned. GHX is anticipating to obtain formal bids within the second half of the yr.
The public sale is the newest instance of funding funds seeking to offload belongings in a push to grasp returns on investments. Temasek has been invested within the firm since 2017, whereas Warburg Pincus purchased a minority stake in 2021.
By mid-March, non-public fairness teams had offloaded a complete of almost $119bn in belongings globally this yr, by means of gross sales or public listings. That is the second-highest stage in twenty years however nonetheless under the identical level in 2021 when a growth in sponsor-backed deal exercise resulted in $211bn of exits, based on a Bain evaluation of Dealogic knowledge.
The GHX sale course of was probably to attract curiosity from non-public fairness teams in addition to strategic patrons, but it surely may not end in a sale if the funds determined to carry on to the corporate, the individuals mentioned. GHX supplies cloud-based stock, provide chain and fee administration companies for healthcare suppliers and suppliers.
Temasek and Warburg Pincus declined to remark. GHX declined to touch upon “hypothesis” in regards to the sale course of, including that the corporate was “targeted on delivering progressive provide chain options that enhance effectivity and scale back prices for healthcare suppliers and suppliers”.
This yr, non-public fairness teams have managed to engineer some massive exits from software program corporations. Warburg Pincus, alongside members of the founding administration workforce, totally exited a 90 per cent stake in digital well being data firm Modernizing Medicine, promoting to Clearlake Capital in a deal that valued it at $5.3bn, with the non-public fairness group realising a virtually 10-fold return on its funding, based on individuals conversant in the matter.
Thoma Bravo additionally struck a deal to promote power software program group Quorum to Francisco Companions for $2.4bn. Blackstone can also be seeking to exit digital well being data firm HealthEdge.
Temasek purchased a stake in GHX from Thoma Bravo in 2017, valuing the enterprise at $1.8bn. Warburg Pincus injected $500mn into the enterprise in 2021, at which level Thoma Bravo totally exited its stake.
Temasek has $291bn of belongings in its world funding portfolio, whereas Warburg Pincus has $87bn in belongings beneath administration.
