(Bloomberg) -- Ardian SAS is shelving the planned sale of a majority stake in Italian health-care software provider Dedalus, people with knowledge of the matter said.
The Paris-based buyout firm is putting the process on hold due to valuation and financing concerns, the people said, asking not to be identified because the information is private.
Ardian was seeking to value the business at more than 3 billion euros ($3 billion), Bloomberg News has reported. The deal joins a number of transactions that have recently been put on ice as rocky credit markets make it more challenging for private equity firms to borrow money cheaply.
Ardian is still considering other options for Dedalus, including the potential sale of a minority stake, one of the people said. Deliberations are ongoing, and it could also revive a full sale at a later date, the people said.
Representatives for Ardian and Dedalus declined to comment.
Private equity dealmakers are struggling to get the cheap credit they need to finance buyouts, as the debt markets have been rocked by skyrocketing inflation and fears of an economic slowdown.
Investment banks are nervous to add more underwritten debt to the $80 billion they already hold on their balance sheet, while private lenders are pulling back on risk by cutting how much debt they are offering in a single deal.
Dedalus provides information and clinical and administrative software to hospitals, clinics and laboratories in about 40 countries. The company has expanded rapidly through acquisitions since being bought by Ardian in 2016. Sovereign wealth fund Abu Dhabi Investment Authority took a minority stake in Dedalus for an undisclosed amount last year.
(Updates with Dedalus response, dealmaking context from fourth paragraph.)
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