Exclusive: Blackstone emerges as frontrunner to buy Enverus, sources say

Blackstone Inc. has emerged as the frontrunner to acquire energy-focused data provider Enverus for approximately $6 billion from Hellman & Friedman, which had purchased the company for $4.25 billion in 2021. This potential deal, with Blackstone re-entering the process, underscores continued robust M&A activity within the software sector, defying a general slowdown in other transaction areas.

Analysis

Blackstone Inc. (BX) has reportedly emerged as the leading bidder to acquire energy-focused data provider Enverus from Hellman & Friedman for approximately $6 billion. This potential transaction highlights significant value creation, as Hellman & Friedman acquired its majority stake in 2021 for $4.25 billion, including debt. The deal underscores Blackstone's strategic appetite for high-growth, data-centric software businesses and would provide it with a key asset serving the oil and gas industry. The report also signals continued strength and premium valuations within the software M&A market, which has maintained a "brisk pace" despite a broader slowdown in transaction activity. However, the situation remains fluid, as sources noted the deal is not yet certain and that Blackstone had previously dropped out of and then re-entered the bidding process, indicating complex negotiations are still underway.

Key Decisions for Investors

• For investors in Blackstone (BX), this potential acquisition reinforces its strategy of deploying capital into high-growth software and data assets, which could be a long-term positive for its private equity portfolio.
• The prospective $6 billion valuation, a substantial increase from the 2021 price, serves as a strong valuation benchmark for other private and public companies in the specialized enterprise software and data analytics sector.
• Given that the deal remains unconfirmed and negotiations are ongoing, investors should monitor for official announcements and final terms, as deal failure or altered pricing could impact short-term sentiment for Blackstone.
• The transaction highlights the increasing importance of data analytics in the energy sector, suggesting investors may want to evaluate other technology providers that serve the oil and gas industry.