Private equity firm Blackstone Group LP (NYSE:BX), along with Pactera's (NASDAQ:PACT) CEO and other managers, has offered to take Pactera private in a deal that values the Chinese technology consulting and outsourcing firm at $680.4 million.
Shares rose 31 percent 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 $7.50 for each U.S.-traded share of the company that they don't already hold. That's 43 percent higher than Friday's close of $5.26 on the Nasdaq stock market and puts the value of the company at $680.4 million, based on Pactera's 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 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 U.S.-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 private in a roughly $890 million deal. Focus Media Holdings 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 $3.7 billion.
Shares of Pactera jumped $1.61 to $6.87 by early afternoon.
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