Blackstone, Vista buy Australia's Energy Exemplar, Riverside exits
The Blackstone Group and Vista Equity Partners have agreed to acquire Energy Exemplar, an Australia-based simulation software company, setting up a sizeable exit for The Riverside Company.
Financial details were not disclosed. Citing unspecified sources, The Australian Financial Review said Blackstone and Vista would each take 50% stakes in a deal worth more than USD 1bn.
Riverside invested in EE in 2017 via an Australia-focused fund called RAF. The firm closed RAF III in 2020 on AUD 261m (then USD 243m). That fund has invested in Energy Exemplar, but it is not clear if it is the only vehicle to hold a stake in the company. The overall size of Riverside's stake is also unknown.
Riverside claims EE has grown 30% a year since 2018. Although still headquartered in Australia, this growth trajectory has shifted a larger share of the business offshore, especially to the US. During Riverside’s holding period, the footprint has increased from 47 to 79 countries. This involved adding offices in India, Singapore, the UK, and North America.
The investment period was also marked by an expansion of the staff by 7x and the recruitment of CEO David Wilson, formerly of McKinsey & Company and GE Power. There are currently more than 500 utility and power companies in the customer base.
“Riverside invested significantly into R&D, resulting in a leading global cloud product for the industry, building grid databases throughout the world and establishing new products into business intelligence and insights,” Nicholas Pejnovic, a principal of RAF, said in a statement.
Energy Exemplar specialises in developing, selling, and supporting simulation and modelling software for energy sector companies. Its core products, Plexos and Aurora, are applicable across short-term analysis and long-term planning studies.
Vista called the company a leader in its category with “a holistic view of the impact traditional and emerging energy systems have on the businesses of those leading the energy transition.” Blackstone noted growth potential in areas such as renewable energy, battery storage, and transmission grid upgrades.
“Taking a small Australian company and building it into a leading Energy Analytics platform enabling the energy transition globally has been a truly transformational journey, and at every step, the partnership with Riverside has been pivotal,” Wilson added.
“Together, we developed an ambitious vision and strategy, and I have appreciated the long-term commitment to invest and create the outstanding business it is today.”
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