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Temasek and Warburg Pincus are getting ready to place healthcare provide chain administration firm World Healthcare Alternate up on the market, aiming at a valuation of just about $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 might lead to a partial or full- stake sale, the individuals stated. GHX is anticipating to obtain formal bids within the second half of the 12 months.
The public sale is the newest 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 almost $119bn in belongings globally this 12 months, via gross sales or public listings. That is the second-highest degree in 20 years however nonetheless beneath 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 seemingly to attract curiosity from non-public fairness teams in addition to strategic patrons, nevertheless it won’t lead to a sale if the funds determined to carry on to the corporate, the individuals stated. GHX gives cloud-based stock, provide chain and cost 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 revolutionary provide chain options that enhance effectivity and scale back prices for healthcare suppliers and suppliers”.
This 12 months, non-public fairness teams have managed to engineer some massive exits from software program corporations. Warburg Pincus, alongside members of the founding administration staff, totally exited a 90 per cent stake in digital well being information 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 vitality software program group Quorum to Francisco Companions for $2.4bn. Blackstone can also 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 international funding portfolio, whereas Warburg Pincus has $87bn in belongings below administration.
