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Temasek and Warburg Pincus are getting ready to place healthcare provide chain administration firm International Healthcare Trade up on the market, aiming at a valuation of just about $5bn, based on individuals acquainted with the matter.
GHX, through which the Singaporean government-backed funding fund owns a majority stake and the US non-public fairness group the rest, was working with advisers on a sale course of, which might 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 most recent instance of funding funds trying to offload belongings in a push to understand 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 practically $119bn in belongings globally this yr, via gross sales or public listings. That is the second-highest degree in twenty years however nonetheless beneath the identical level in 2021 when a increase in sponsor-backed deal exercise resulted in $211bn of exits, based on a Bain evaluation of Dealogic information.
The GHX sale course of was seemingly to attract curiosity from non-public fairness teams in addition to strategic consumers, nevertheless it may not end in a sale if the funds determined to carry on to the corporate, the individuals mentioned. GHX gives 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” concerning the sale course of, including that the corporate was “targeted on delivering modern provide chain options that enhance effectivity and cut back prices for healthcare suppliers and suppliers”.
This yr, non-public fairness teams have managed to engineer some giant exits from software program firms. Warburg Pincus, alongside members of the founding administration staff, totally exited a 90 per cent stake in digital well being information firm Modernizing Drugs, 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 acquainted with the matter.
Thoma Bravo additionally struck a deal to promote power software program group Quorum to Francisco Companions for $2.4bn. Blackstone can be trying to exit digital well being information 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.
