Private equity firm Blackstone is considering selling its sustainability software company Sphera for around $3 billion. Blackstone bought Sphera in 2021 for $1.4 billion. Sources say Blackstone has hired financial advisors to look into a possible sale of Sphera.
However, Blackstone has not made a final decision and may choose to keep the business. The potential sale comes as more investors are interested in companies related to environmental, social, and governance (ESG) issues. Companies and investors are increasingly focusing on sustainability practices due to regulations and stakeholder expectations.
Sphera provides software that helps companies manage and report their environmental, social, and governance (ESG) performance.
Blackstone considers Sphera sale options
It has over 8,400 clients in 95 countries, including major companies such as Siemens, Mercedes-Benz, Danone, and Wrangler.
Based in Chicago, Sphera makes more than $300 million in yearly revenue and over $100 million in earnings before interest, taxes, depreciation, and amortization (EBITDA). This strong financial performance could value the company at $3 billion. Investment banks William Blair and Evercore are managing the early stages of the sale process.
Sphera and the banks have not commented on the potential deal. The possible sale highlights the continued demand from investors for software platforms that help with ESG compliance and risk management. It also shows how private equity firms are driving innovation and consolidation in sustainability-related industries.
Image Credits: Photo by Abbe Sublett on Unsplash
April Isaacs is a news contributor for DevX.com She is long-term, self-proclaimed nerd. She loves all things tech and computers and still has her first Dreamcast system. It is lovingly named Joni, after Joni Mitchell.
