PE giants eye $1 bn deal for EQT's 40% CitiusTech stake

CitiusTech posted revenue of ₹3,552 cr and profit of ₹350 cr, as growth moves into mid-teens

- Priyamvada C & Sneha Shah

VC Capital Partners, Advent International, Carlyle and Temasek are among private equity firms evaluating the acquisition of EQT Partners' 40% stake in healthtech firm CitiusTech in a potential deal likely at around $1 billion, three people familiar with the matter said.

Others such as Ontario Teachers' Pension Plan (OTPP) and Blackstone are also evaluating the asset, two of the three people cited above said on the condition of anonymity. The people added that JP Morgan is conducting the sale process.

“While no bids have been placed, the process has been initiated to gauge market interest even as the IT services industry undergoes a challenging time,” a third person said, adding that the transaction is still in early stages and the contours are still being decided.

The development comes against the backdrop of a consolidation in the broader information technology (IT) services industry, which has seen various mergers and acquisitions over the recent years.

The move further underscores the company's plans to explore various acquisitions to establish its market presence ahead of a planned public listing in the near term.