Busy Blackstone targets Team Health, nears Pactera exit
October 06, 2016
Blackstone’s days are busier than most: The firm has been one of the 10 busiest private equity investors in the world so far in 2016, according to the PitchBook Platform. And this week has been no different, with Blackstone emerging as a bidder for a healthcare services company and agreeing to a major exit of an outsourcing business.
First, per The Wall Street Journal, Blackstone and Bain Capital have each held talks to acquire Team Health (NYSE: TMH), a provider of healthcare services with a market cap of about $2.8 billion as of Wednesday. The company’s stock soared in the wake of the news, jumping from $32.35 per share Tuesday afternoon to $39.90 by end of day Wednesday. Team Health carries $2.4 billion in debt, resulting in an enterprise value of roughly $5 billion. A Bloomberg report added that Bain Capital's talks ended without an agreement and that Blackstone's discussions are still in the early stages.
Blackstone has also agreed to sell Pactera Technology to a unit of HNA Group (SZ: 000616) for about $675 million in cash (again according to the WSJ), earning a more than 1.5x from a 2014 investment. The sale reportedly values Pactera at around $930 million. The company provides IT outsourcing and consulting services, working mainly with companies in China.