Temasek and Warburg Pincus plan $5 billion GHX sale

Temasek and Warburg Pincus are planning to sell Global Healthcare Exchange (GHX), aiming for a valuation of nearly $5 billion. GHX is a healthcare supply chain management company. Temasek, a Singaporean investment fund, holds a majority stake, while Warburg Pincus owns the rest. They are working with advisers to set up the sale process, which could involve selling part or all of their stakes. Formal bids are expected in the second half of the year. This move comes as investment funds are looking to sell assets to generate returns. Temasek has been involved with GHX since 2017, and Warburg Pincus bought a minority stake in 2021. So far this year, private equity firms globally have sold almost $119 billion in assets. This is one of the highest levels in 20 years, though still below the peak seen in 2021. The sale of GHX is likely to attract interest from private equity groups and strategic buyers. However, if the funds choose to keep the company, it might not go through. GHX offers cloud-based services for inventory and supply chain management in healthcare. Temasek and Warburg Pincus did not comment on the sale. GHX also refrained from discussing the sale process but emphasized its focus on improving efficiency and reducing costs for healthcare providers. In recent months, private equity groups have successfully exited other software companies. For example, Warburg Pincus recently sold a 90% stake in Modernizing Medicine for $5.3 billion, making a significant return. Other sales this year include Thoma Bravo's deal with Francisco Partners for $2.4 billion and Blackstone's plans to sell HealthEdge. Temasek acquired its stake in GHX for $1.8 billion in 2017, while Warburg Pincus invested $500 million in 2021. Temasek's total investment portfolio is valued at $291 billion, and Warburg Pincus manages $87 billion in assets.