Temasek, GIC are said to buy Novotech stake in deal with TPG

[SINGAPORE] Temasek and GIC will acquire a significant stake in Novotech to fuel growth and accelerate acquisitions for the clinical research and testing provider, valuing the company at about A$3 billion (S$2.5 billion), people familiar with the matter said.

Existing backer TPG will also reinvest through its Asia VIII US$5.3 billion fund. Novotech’s earnings before interest, depreciation and amortisation has grown fivefold since TPG’s initial investment in 2017, the people said, asking not to be identified because the matter is confidential.

The deal will help TPG make a full exit from its previous investment in 2017 in Asia VI. Novotech in 2021 suspended its Hong Kong public share sale due to Covid-related market volatility and investor uncertainty.

TPG would remain controlling shareholder of the company after the deal. A TPG spokeswoman declined to comment. A GIC spokeswoman declined to comment and Temasek couldn’t immediately be reached outside normal business hours.

Since TPG’s investment in 2017, the firm has raised its headcount tenfold to 3,000 employees and expanded its operations globally, establishing a presence in Europe and North America in addition to its original focus on Australia, New Zealand and parts of Asia. BLOOMBERG