AP - Private equity firm Blackstone Group LP, along with Pactera's chief executive officer and other managers, have offered to take Pactera private in a deal that values the Chinese technology consulting and outsourcing firm at US$680.4 million (S$856 million).
Shares rose 31 per cent on Monday. Through Friday's close, before news of the offer, Pactera's stock had lost about two-thirds of its value over the past year.
Blackstone and the group of Pactera leaders are offering US$7.50 for each US-traded share of the company that they don't already hold. That's 43 per cent higher than Friday's close of US$5.26 on the Nasdaq stock market and puts the value of the company at US$680.4 million, based on Pactera's the estimated 90.7 million shares outstanding.
The group of potential buyers working with Blackstone includes Pactera's non-executive chairman, Chris Chen, its CEO, Tiak Koon Loh, and three of its executive committee members.
Pactera said that its board will likely form a special committee of independent directors to review the proposal.
It is one of several recent buyouts efforts by private equity firms of US-listed Chinese companies.
Citic Capital Partners said last week that it, along with one of the company's co-founders, would take technology services firm AsiaInfo-Linkage Inc private in a roughly US$890 million deal.
Focus Media Holdings Ltd shareholders agreed in April to a deal to sell the Chinese advertising company to private equity firm Carlyle Group and a handful of Chinese investors for US$3.7 billion.
Shares of Pactera had jumped by US$1.61 to reach US$6.87 by early afternoon.