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Carlyle Group’s VXI Global: Acquisition Target of Bain Capital

Carlyle Group’s (CG) outsourcing firm VXI Global Solutions is an acquisition target. Citing people familiar with the matter, Bloomberg reports that Boston-based Bain Capital Specialty Finance (BCSF) is eyeing a deal and is in the final stages of conducting due diligence.

Carlyle Group is a multi-product global alternative asset management company. It operates through Corporate Private Equity, Real Assets, Global Credit, and Investment Solutions segments.

VXI Sell-Off

Bain Capital is the likeliest buyer, in the front seat after outbidding other interested firms and industry peers. The proposed push to buy comes five years after Bain sold its stake in the business to Carlyle Group. Valued at between $1.5 billion and $2 billion, VXI has already attracted interest from buyout firms such as Baring Private Equity Asia.

VXI expanded into China in 2005, where it boasts a strong business foothold. It has already helped multinational companies enter the second-largest economy by offering outsourcing and information technology services.

Carlyle Group is currently the majority shareholder in VXI, after acquiring stakes from owners, including Bain Capital, in 2017.

Analysts’ Take

Last week, Deutsche Bank analyst Brian Bedell reiterated a Buy rating on Carlyle Group stock and lowered the price target to $70 from $72, implying 36.75% upside potential to current levels.

Consensus among analysts is a Moderate Buy based on 5 Buys and 3 Holds. The average Carlyle Group price target of $68.50 implies 33.82% upside potential to current levels.

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