Key Takeaways
- • EQT Partners is selling its entire 40% stake in CitiusTech for approximately $1 billion, realizing significant gains on a six-year investment in the healthcare technology firm.
- • The stake sale values CitiusTech at $2.2–$2.4 billion or 18–20x FY26 EBITDA (~$120 million), likely matching or slightly exceeding the 2022 Bain Capital acquisition price of $960 million for a 40% stake.
- • EQT's capital has already been recovered with "handsome returns" from its prior partial stake sale to Bain in 2022, when the company valuation doubled in just three years from the original 2019 investment at $1 billion.
- • CitiusTech ownership is split 40% EQT, 40% Bain Capital, with the remaining 20% held by founders Rizwan Koita and Jagdish Moorjani (both IIT alumni) and employees; multiple PE bidders including CVC, Advent, Carlyle, and Blackstone are reportedly circling the company.
- • The exit timing reflects renewed momentum at CitiusTech following a two-year period of muted growth due to reduced global technology budgets, signaling improving market conditions for healthcare IT assets.
Summary
EQT Partners is advancing plans to divest its entire 40% stake in CitiusTech, a healthcare technology, analytics, and consulting firm, for nearly $1 billion. The Swedish private equity group is working with financial advisors to solicit binding offers from potential acquirers, marking a significant exit event in the healthcare IT sector and a full monetization of EQT's six-year position in the company.
The proposed sale values CitiusTech at $2.2–$2.4 billion, representing 18–20x forward FY26 EBITDA of approximately $120 million. EQT's stake sale may achieve valuations comparable to the 2022 transaction in which Bain Capital acquired half of EQT's original 80% holding for roughly $960 million in a competitive bid that defeated rival offers from Fujitsu and Apax Partners. According to a sector analyst quoted in the primary reporting, EQT has already recovered its capital commitments with strong returns from that prior partial exit, having seen the company valuation double between 2019 and 2022.
CitiusTech's ownership structure currently comprises 40% each held by EQT and Bain Capital, with the remaining 20% distributed among founders and employees. The company was established by serial entrepreneur Rizwan Koita and fellow IIT alumnus Jagdish Moorjani. EQT's initial 2019 investment valued the company at just over $1 billion when it acquired approximately 80% from the founders and General Atlantic, the latter having deployed $111 million in 2014.
The timing of EQT's exit reflects improved operating momentum at CitiusTech following a near two-year period of revenue headwinds driven by constrained technology spending budgets across global markets. Multiple large PE firms—including CVC, Advent, Carlyle, and Blackstone—have reportedly expressed acquisition interest. However, EQT may face headwinds in securing a material premium over the 2022 Bain valuation, and other shareholders, including Bain itself, are unlikely to pursue simultaneous exits unless strategic buyers signal substantially higher valuations, according to sources familiar with the matter.
The proposed sale values CitiusTech at $2.2–$2.4 billion, representing 18–20x forward FY26 EBITDA of approximately $120 million. EQT's stake sale may achieve valuations comparable to the 2022 transaction in which Bain Capital acquired half of EQT's original 80% holding for roughly $960 million in a competitive bid that defeated rival offers from Fujitsu and Apax Partners. According to a sector analyst quoted in the primary reporting, EQT has already recovered its capital commitments with strong returns from that prior partial exit, having seen the company valuation double between 2019 and 2022.
CitiusTech's ownership structure currently comprises 40% each held by EQT and Bain Capital, with the remaining 20% distributed among founders and employees. The company was established by serial entrepreneur Rizwan Koita and fellow IIT alumnus Jagdish Moorjani. EQT's initial 2019 investment valued the company at just over $1 billion when it acquired approximately 80% from the founders and General Atlantic, the latter having deployed $111 million in 2014.
The timing of EQT's exit reflects improved operating momentum at CitiusTech following a near two-year period of revenue headwinds driven by constrained technology spending budgets across global markets. Multiple large PE firms—including CVC, Advent, Carlyle, and Blackstone—have reportedly expressed acquisition interest. However, EQT may face headwinds in securing a material premium over the 2022 Bain valuation, and other shareholders, including Bain itself, are unlikely to pursue simultaneous exits unless strategic buyers signal substantially higher valuations, according to sources familiar with the matter.
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