Blackstone and Vista Equity Partners have agreed to acquire Australia’s Energy Exemplar, an energy market software provider, for more than $1 billion, people familiar with the matter said.
The deal represents a bet on the energy transition, as power companies, grid operators and renewable energy developers turn to simulation software to fine-tune the use of production capacity and maximize efficiency.
The two buyout firms will each hold a 50% stake, said the sources, who requested anonymity ahead of an official announcement expected on Tuesday. Energy Exemplar’s current owner, private equity firm Riverside Company, will collect the money, they added.
Vista, Blackstone, Riverside and Energy Exemplar declined to comment.
Energy Exemplar has grown at a compound annual rate of 30% since 2018 under Riverside’s ownership, the sources said. The North Adelaide-based company provides software tools that are used by more than 500 companies in 79 countries to simulate and forecast electricity, water, gas and renewable energy markets.
Blackstone is investing in Energy Exemplar through its energy transition arm, which is in the process of raising a new fund. Called Blackstone Energy Transition Partners IV, the fund raised $2.2 billion toward its $5.6 billion target as of the end of August, according to a filing with the U.S. Securities and Exchange Commission.
The New York-based buyout firm has moved aggressively into this space, saying last year that it saw an opportunity to deploy $100 billion in energy transition projects and climate change solutions over the next decade.
Its previous investments include Transmission Developers, solar assembly firm Esdec, environmental engineering firm Geosyntec, environmental commodities exchange Xpansiv and renewable energy firm Invenergy. In August, Blackstone also said it had raised the world’s largest credit fund dedicated to the energy transition, raising $7.1 billion.
Vista, a software specialist, is participating in the deal through its Foundation strategy for the middle market. The firm raised its fourth Foundation fund in 2020, raising $4.5 billion, and is expected to raise another in the coming months.
Reuters