Temasek Holdings Pte and GIC Pte Ltd. are set to acquire a significant portion of Novotech Pty Ltd. to support its growth and hasten its expansion through acquisitions. The company's valuation stands at around A$3 billion ($1.9 billion) as per sources familiar with the matter.

An existing investor, TPG, will also reinvest through its Asia VIII $5.3 billion fund. The company's earnings before interest, depreciation, and amortization have surged dramatically since TPG's initial investment in 2017, revealing substantial growth, these sources revealed on the condition of anonymity due to the confidentiality of the issue.

This deal will enable TPG to completely divest from its prior 2017 investment in Asia VI. Novotech had to call off its Hong Kong initial public offering in 2021 due to market instability and investor apprehension stemming from the impact of the pandemic.

Following the transaction, TPG will maintain its position as the principal shareholder of Novotech. Spokespeople for TPG, GIC, and Temasek declined to provide comments or were unavailable for immediate response outside standard business hours.

Since TPG's investment in 2017, the company has grown its workforce by ten times to reach 3,000 employees and has broadened its global footprint, expanding into Europe and North America in addition to its original operations in Australia, New Zealand, and parts of Asia.