Private Equity Titans Evaluate $1 Billion Stake in Healthtech Leader CitiusTech
In a significant development within the technology and investment sectors, multiple global private equity firms are actively assessing the acquisition of a substantial stake in CitiusTech, a prominent healthtech company based in Mumbai. According to sources familiar with the matter, this potential transaction could be valued at approximately $1 billion, highlighting the intense interest in digital healthcare assets.
Key Players and Process Details
CVC Capital Partners, Advent International, Carlyle, and Temasek are among the leading firms evaluating the purchase of EQT Partners' 40% stake in CitiusTech. Additionally, Ontario Teachers' Pension Plan (OTPP) and Blackstone are also considering the asset, as confirmed by anonymous sources. The sale process is being managed by JP Morgan, although no formal bids have been submitted yet. The deal is currently in its early stages, with contours still being defined, as the IT services industry navigates a challenging period marked by consolidation.
Background and Strategic Context
This move occurs against a backdrop of ongoing mergers and acquisitions in the broader IT services space, underscoring CitiusTech's strategy to explore acquisitions to bolster its market presence ahead of a planned public listing. Founded in 2005 by Rizwan Koita and Jagdish Moorjani, CitiusTech provides digital healthcare technology and consulting services to over 130 healthcare and life sciences organizations. The company has invested in AI-driven solutions, proprietary platforms, and scalable offerings to address industry needs such as value-based performance and digital health transformation.
In terms of ownership, CitiusTech's current shareholders each hold roughly a 40% stake, with the remainder held by promoters and employees. EQT, originally Baring Private Equity Asia, acquired a majority stake in 2019 and rebranded in 2022. If this sale proceeds, it would mark EQT's complete exit from its seven-year investment in the company, following Bain Capital's entry in 2022 by purchasing a portion of EQT's stake.
Financial Performance and Growth Trajectory
In FY24, CitiusTech reported a revenue of ₹3,552 crore and a profit of ₹350 crore, according to data from the Ministry of Corporate Affairs. The company aims to achieve $1 billion in revenue by FY28, having recorded high-single-digit revenue growth in FY25 and projecting mid-teen growth in the current fiscal year. Its expansion plans include entering markets in Europe and Japan, driven by increasing demand for healthcare technology services.
Industry Landscape and Competitive Dynamics
The healthtech and IT services sector is highly competitive, with CitiusTech facing rivals such as Innovaccer, Abacus Insights, Emids, Cotiviti, Altera Digital Health, and Inovalon. The company has strengthened its position through acquisitions like FluidEdge and SDLC Partners, enhancing its capabilities in healthcare domain consulting and digital transformation solutions. This potential stake sale aligns with broader trends in the industry, including other notable deals such as Zensar's interest in Mastek and PAG's evaluation of Accion Labs.
Representatives from Blackstone, EQT, JP Morgan, Carlyle, and Temasek declined to comment on the matter, while emails to CitiusTech, CVC, Advent, and OTPP did not receive responses at the time of reporting.
