Private equity firm Hillhouse Investment has launched a tender offer to acquire all shares and stock options in Japanese IT services company Circlace, according to an announcement.
HHH1 G.K., an entity indirectly wholly owned by Hillhouse Fund V, commenced the offer on Friday. Circlace’s board has endorsed the offer and recommended that shareholders tender their shares.
Per the announcement, two of Circlace’s largest shareholders, Pasona Group and TQUILA, have entered into tender agreements with the offeror.
Financial terms of the tender offer remain undisclosed.
Circlace, listed on the Tokyo Stock Exchange’s Growth market, provides digital transformation consulting and cloud technology services, including integrations for Salesforce, Anaplan, and ServiceNow.
Founded in 2012, the Tokyo-based company also operates proprietary software products, including an overseas human resources platform.
Hillhouse said it plans to work with Circlace’s management and employees after the transaction to support its long-term growth, including investments in service and technology capabilities and deeper client relationships.
The firm has been investing in Japan since 2009 and took Samty Holdings private in 2024.
“We believe partnering with them in this next chapter will give them the flexibility to invest for the long term,” said Tomohiro Kikuta, partner, Hillhouse Investment.
Circlace chairman, president, and CEO Scott Sato said the board considered the transaction to be in the best interests of the company and its shareholders, offering them an opportunity to sell at a fair price.
“Partnering with Hillhouse… will give us the flexibility and resources to pursue our growth strategy and to continue delivering value to our customers, partners, and employees,” Sato said.
Founded in 2005, Hillhouse is an alternative investment firm headquartered in Singapore with a staff of over 500 globally in over 18 countries, according to its website.
Besides Singapore, it also has offices in New York, London, and Hong Kong, among others.
The firm’s portfolio in Southeast Asia includes Singapore-based semiconductor startup Silicon Box; super app Grab; B2B marketplace Udaan; and voice AI startup WIZ.AI.
Its prominent portfolio companies include Airbnb, Uber, Traveloka, Didi, JD.com, Tencent, Meituan, NIO, Beijing-based global biotechnology firm Beigene, Chinese women’s shoe retailer Belle International, among others.
