Blackstone and Vista Equity Partners Acquire Energy Exemplar in $1 Billion Deal

In a significant move towards advancing the global energy transition, Blackstone and Vista Equity Partners have jointly acquired Australian energy market software provider Energy Exemplar, a deal worth approximately $1 billion, according to undisclosed sources. The acquisition highlights a strategic bet on the growing demand for simulation tools that enable power utilities, grid operators, and renewable energy developers to optimize production capacity and efficiency in an evolving energy landscape.

Under the terms of the deal, both buyout groups will hold an equal 50% stake in Energy Exemplar, marking a strong partnership in steering the company towards further innovation and growth. The acquisition will see Riverside Company, the current owner of Energy Exemplar, exiting the investment.

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Since Riverside's acquisition of Energy Exemplar in 2018, the company's annual growth has surged by an impressive 30%. With a presence in 79 countries, the North Adelaide-based software provider serves over 500 companies, offering them essential tools to model and forecast electric, water, gas, and renewable energy markets.

Blackstone's energy transition arm is taking a proactive step by creating a dedicated fund to invest in Energy Exemplar. The fund, named Blackstone Energy Transition Partners IV, had already raised $2.2 billion of its $5.6 billion target by August, according to filings with the U.S. Securities and Exchange Commission. This initiative aligns with Blackstone's commitment to invest $100 billion in energy transition and climate change solutions projects over the next decade.

Notably, Blackstone has previously made substantial investments in energy transition and climate-related ventures. Their portfolio includes investments in companies like Transmission Developers, Esdec, Geosyntec, Xpansiv, and Invenergy. In August, Blackstone also unveiled the world's largest energy transition credit fund, securing a substantial $7.1 billion for the initiative.

On the other hand, Vista Equity Partners, known for its expertise in software solutions, is engaging with Energy Exemplar through its middle-market foundation approach. The company successfully raised $4.5 billion in its fourth fund in 2020 and is anticipated to launch another in the near future.

As the energy sector undergoes a paradigm shift towards sustainable practices, the acquisition of Energy Exemplar by Blackstone and Vista Equity Partners signals a pivotal moment in the industry. The infusion of capital, coupled with the strategic expertise of the two renowned investment firms, is poised to propel Energy Exemplar to the forefront of the global energy market software domain, driving innovation and efficiency in the pursuit of a greener future.