BPEA EQT is set to merge two Hong Kong-based business services firms it owns, Tricor and Vistra, in a deal valuing the combined entity at about $6.5 billion including debt, according to people familiar with the matter.
(Bloomberg) — BPEA EQT is set to merge two Hong Kong-based business services firms it owns, Tricor and Vistra, in a deal valuing the combined entity at about $6.5 billion including debt, according to people familiar with the matter.
A merger agreement has been signed and the deal could be announced after its completion as soon as in the third quarter, the people said, asking not to be identified as the matter is private. To give the combined business a valuation, BPEA EQT sold a minority stake in Vistra to Canadian public sector pension manager PSP Investments for a few hundred million dollars, the people said.
Tricor and Vistra will be refinancing existing debt in a $2.5 billion loan package, the people said. The newly-created business will generate about $1 billion in revenue and count about 9,000 employees in more than 50 markets, the people said.
Vistra Chief Executive Officer Simon Webster will lead the combined entity, while Dominique Cerutti, who joined Vistra as non-executive chairman in January, will continue with the same role in the new firm, the people said. A merger will help the business accelerate investments in services and technology, they added.
A representative for BPEA EQT declined to comment, while a representative for PSP Investments didn’t immediately respond to requests seeking comment.
BPEA EQT had been working with advisers on a merger of the two portfolio companies, Bloomberg News reported in September. A merger of Vistra and Tricor could help the buyout owner reduce operating costs and boost revenues, people familiar with the matter said at the time.
Founded in 2000, Tricor provides business operations and corporate governance support including accounting, payroll and secretarial services for publicly-traded and closely-held companies, according to its website. It also offers investor and share registry services. It counts about 50,000 clients globally, of which about 40% are in mainland China. BPEA completed its purchase of Tricor from Permira last year, in a deal that valued the company at about $2.8 billion including debt.
BPEA acquired a majority stake in Vistra from IK Investment Partners in 2015 for an undisclosed sum. Vistra offers back-office services including accounting, corporate secretarial work, company formation, compliance and transaction support, according to its website. Its existing platform spans Asia Pacific, Europe, the Middle East and the Americas.
EQT AB last year acquired the Hong Kong-based BPEA in the biggest takeover in the private equity sector. The deal combined the two firms’ Asia private equity teams to create BPEA EQT.
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