Shares in private equity group Blackstone (BX) were looking 0.8% better today as it got set to launch its biggest ever investment deal in Japan with a multi-billion-dollar pursuit of IT services group TechnoPro Holdings (TXHPF).
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Blue Chip Provider
Blackstone said today that it intended to make a tender offer worth $3.5 billion to take TechnoPro private. It is offering 4,870 yen per share, which is a 17.4% premium to its closing average in the last three months.
TechnoPro offers IT solutions across hardware and software primarily to Japan’s large corporations. It has more than 28,000 engineers and researchers and 2,500 clients in industries such as automotive, IT services, and semiconductors.
Atsuhiko Sakamoto, Head of Private Equity Japan, Blackstone, said: “We are investing in a high-quality IT services provider, which is bolstered by secular tailwinds in the digitization of the economy and artificial intelligence.”
This is Blackstone’s seventh private equity investment in Japan, and the third deal this year for Blackstone Japan’s Private Equity business following the closing of I’rom Group Co., Ltd. and CIMIC Co., Ltd. It is also its third deal in Japan’s technology sector following the 2024 closings of Sony Payment Services and Infocom Corporation.
It is a further sign of a recovery in capital deployment over the last two years.
Japanese Joy
Japanese firms are becoming increasingly attractive to overseas buyers and investors given the large focus in recent years on improving corporate governance and boosting shareholder returns. A rise in more activist investors is also putting pressure on boards to do deals.
In addition, a weak yen has created a favorable environment for dealmaking, particularly for private equity groups.
Indeed, Japan has seen a record $232 billion in deals carried out in the first half of 2025.
Last week Swedish investment firm EQT (EQT) announced a $2.7 billion tender offer for lift-maker Fujitec (6406), while in February KKR (KKR) took software developer Fuji Soft private after a protracted bidding war with rival Bain (BCSF). KKR also paid $2.1 billion for Japanese medical, agricultural, and construction product maker Topcon in March.
It is understood that Bain and KKR are part of three rival groups preparing to bid for brewer Sapporo Holdings’ (SOOBF) real estate business at a sale price of around 400 billion yen.
The improved sentiment around deals has helped stock prices in the sector rise over the last few months.
Is BX a Good Stock to Buy Now?
On TipRanks, BX has a Moderate Buy consensus based on 8 Buy and 7 Hold ratings. Its highest price target is $200. BX stock’s consensus price target is $184.80, implying a 10.21% upside.
