Private equity funds and vehicles managed by US-based Blackstone, the world’s largest alternatives asset manager, will make a tender offer for all of the interests in Japanese IT services provider TechnoPro.

The offer, valued at nearly US$3.5 billion ( 507 billion yen ), will be the firm’s largest investment to date in Japan across strategies. It expects to commence the tender offer on August 7.

TechnoPro, which provides IT development and product R&D solutions across hardware and software primarily to Japan’s large corporations, has more than 28,000 engineers and researchers and 2,500 clients in industries like automotive, IT services and semiconductor.

This is the asset manager’s seventh private equity investment in Japan, representing significant momentum for the firm and its commitment to the country. It will be the third deal this year for Blackstone Japan’s private equity business following the closing of I’rom Group and CIMIC and its third deal in Japan’s technology sector, following the 2024 closings of Sony Payment Services and Infocom.

Blackstone has made substantial investments in the Asia-Pacific region over the last 20 years. Since 2024, it has executed 24 private equity investments and sales across the region, driving transformation for the companies it invests in and working to deliver value for investors.

“This is a compelling opportunity that aligns with our strategy of investing in Japan’s future,” shares Atsuhiko Sakamoto, the asset manager’s head of private equity for Japan. “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 ( AI ).

“TechnoPro attracts some of the best talent in the industry and provides mission-critical services that empower Japan’s blue-chip companies. We are excited to bring the full breadth of Blackstone’s scale, resources and expertise in IT services and AI to help accelerate the company’s growth and its continued success.”

Takeshi Yagi, the IT services provider’s president, representative director and CEO, adds: “Over the past 30 years, our company has achieved steady growth by leveraging its strengths in sales capabilities, technical expertise, recruitment power and talent development. By collaborating with Blackstone – which boasts a strong track record in AI and digitalization, as well as deep insights into global technology trends – we are confident that TechnoPro is poised to reach even greater heights of success.”