Blackstone, Vista Equity to buy software firm Energy Exemplar (updated)
31/10/2023 14:09
(Changes sourcing in paragraph 1, adds comment from
Blackstone's Khan in paragraphs 7-8)
By Anirban Sen
Oct 31 (Reuters) - Blackstone BX.N and Vista Equity
Partners said on Tuesday they will acquire Australia's Energy
Exemplar, a provider of energy market software, from private
equity firm Riverside Company in a deal that sources noted was
worth more than $1 billion.
The companies did not provide any financial details.
Reuters reported the move earlier in the day before the
companies had unveiled the deal.
The two buyout firms will each hold a 50% stake, with Energy
Exemplar's existing owner Riverside Company cashing out, said
the sources, who declined to be named.
The deal represents a bet on energy transition, as power
utilities, grid operators and renewable energy developers turn
to simulation software to fine tune use of production capacity
and maximize efficiencies.
Energy Exemplar has grown at an annual compound 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 the electric, 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. Dubbed Blackstone Energy Transition Partners IV, the fund
had raised $2.2 billion towards its $5.6 billion target as of
the end of August, according to a filing with the U.S.
Securities and Exchange Commission.
Bilal Khan, senior managing director at Blackstone Energy
Transition Partners, said the company is excited to work with
Vista and Energy Exemplar to "drive the next stage of
development for Energy Exemplar and its technology solutions
supporting grid reliability and decarbonization."
"This investment is the latest in a series demonstrating
Blackstone's conviction in the energy transition."
The New York-based buyout firm has been moving aggressively
into this area, declaring last year that it saw an opportunity
to deploy $100 billion in energy transition and climate change
solutions projects over the next decade.
Its previous investments include Transmission Developers,
solar mounting firm Esdec, environmental engineering firm
Geosyntec, environmental commodity exchange Xpansiv, and
renewable energy firm Invenergy. Blackstone also said in August
it had raised the largest credit fund in the world dedicated to
energy transition, amassing $7.1 billion.
Vista, a software sector specialist, is participating in the
deal through its middle-market Foundation strategy. The firm
raised its fourth Foundation fund in 2020, amassing $4.5
billion, and is expected to raise a new one in the coming
months.
(Reporting by Anirban Sen in New York and Juby Babu in
Bengaluru; Editing by Edwina Gibbs and Shinjini Ganguli)
((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters
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