TEL AVIV - Blackstone (NYSE:BX) Growth and affiliated funds, under the global asset management firm Blackstone, have reached a definitive agreement to acquire a majority stake in Priority Software, a prominent provider of business software solutions.
This strategic move is aimed at bolstering Priority Software's leading position in the enterprise resource planning (ERP) software market and supporting its expansion across various industries and markets.
Priority Software, renowned for its mission-critical business applications and ERP solutions, serves a diverse clientele across retail, hospitality, and education sectors. With a global network of over 100 partners, the company's innovative cloud-based applications are designed to streamline complex business processes, centralize data management, and drive profitability.
Presently, Priority Software boasts a customer base exceeding 17,000 and has over 300,000 end users in multiple markets. The company's workforce includes over 500 employees spread across offices in Israel, the United States, and Belgium.
Yifat Oron, Senior Managing Director at Blackstone and head of its Israel office, highlighted the company's growth within the ERP market and Blackstone's potential to further nurture this expansion due to its extensive software industry experience and global portfolio.
Sagive Greenspan, CEO of Priority Software, expressed confidence in the partnership with Blackstone to accelerate the company's growth and deepen market penetration. Yuval Cohen, Manager Partner at Fortissimo Capital, echoed this sentiment, citing the company's potential in Israel and the opportunity for continued global expansion.
Stefan Dandl, Director at TA Associates, reflected on the organic and inorganic growth achieved through their partnership with Priority Software and Fortissimo, and anticipates further growth through the new investment from Blackstone.
The financial terms of the transaction were not disclosed. Evercore served as the exclusive financial advisor to Priority, Fortissimo, and TA, with legal counsel provided by Goodwin and Gornitzky. Blackstone received legal counsel from Kirkland & Ellis and Meitar.
Priority Software's offerings include a suite of business applications for various industries, aiming to optimize business management with a comprehensive platform.
The information for this acquisition is based on a press release statement.
InvestingPro Insights
In light of Blackstone's recent acquisition of a majority stake in Priority Software, investors and industry observers are closely monitoring Blackstone's performance metrics. According to InvestingPro data, Blackstone (BX) boasts a substantial market capitalization of $159.76 billion, reflecting the firm's significant presence in the global asset management space. Notably, Blackstone has exhibited impressive revenue growth over the last twelve months as of Q1 2024, with an increase of 129.76%. This growth momentum is further highlighted by a quarterly revenue growth of 173.69% in Q1 2024, indicating a robust financial trajectory for the company.
From an operational standpoint, Blackstone's gross profit margin stands at an enviable 89.98%, underscoring the firm's efficiency and strong command over its cost structure. Additionally, the firm's operating income margin of 48.16% further cements its profitability and operational excellence.
InvestingPro Tips reveal that Blackstone is expected to see net income growth this year, which aligns with the firm's strategic investments and expansion efforts, such as the acquisition of Priority Software. Moreover, despite recent analyst revisions downward for upcoming earnings, Blackstone continues to trade at a low P/E ratio relative to near-term earnings growth, suggesting potential value for investors considering the company's growth prospects. For those seeking further insights, InvestingPro offers additional tips on Blackstone's performance and outlook. By using the coupon code PRONEWS24, readers can gain an extra 10% off a yearly or biyearly Pro and Pro+ subscription, accessing a total of 14 InvestingPro Tips for a comprehensive investment analysis.
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