Blackstone-led buyout group takes Pactera Technology private
A buyout group led by private equity firm Blackstone Group would be taking China-based Pactera Technology International Ltd private. Pactera's management was also a member of the buyout consortium. After one month of discussions about the price tag, both firms had finally agreed on a price tag of USD 625 million. Pactera is the biggest technology outsourcing firm in China.
Blackstone Group's offer was USD 7.30 per American Depositary Share (ADS). According to Investopedia, an ADS is a US dollar-denominated equity share of a company based overseas. It is available for purchase on a stock exchange in the US. In May this year, the buyers offered a price of USD 7.50 per ADS but later reduced that to USD 7 per ADS in September. The price reduction was done because of Pactera's poor financial performance.
The Chinese company did not state why the price was again revised.
Debt financing for the buyout would be provided by Bank of America Merrill Lynch, Citigroup Global Markets Asia Limited and HSBC Bank USA.