Blackstone Buys Majority Stake in Israeli Software Company Valued at $800M

by | May 16, 2024 | Company Reporting | 0 comments

Blackstone, the global alternative asset manager, has made a significant stride into the vibrant landscape of Israeli technology with its recent announcement of acquiring a majority stake in Priority Software. The deal, valued at a staggering $800 million, not only underscores Blackstone’s commitment to expanding its portfolio but also highlights the promising trajectory of Israel’s enterprise software sector.

Priority Software, an Israeli enterprise software company, has garnered attention for its innovative solutions tailored to meet the diverse needs of businesses across various industries. With a robust suite of mission-critical applications and ERP solutions delivered via the cloud, Priority Software has emerged as a leader in facilitating efficient business management processes. Its comprehensive product lineup spans hospitality, retail management, and education. With a customer base exceeding 17,000 and over 300,000 end users across various sectors, the company boasts a workforce of 500 employees located in the U.S, Israel, and Belgium.

Image credit: Priority CEO Sagive Greenspan. (By Aya and Avi Photography)

Sagive Greenspan, the CEO of Priority Software, expressed confidence in the partnership with Blackstone, emphasizing the potential for accelerated growth and enhanced market penetration. Greenspan’s optimism reflects the shared vision of both companies in leveraging technological advancements to drive unparalleled value for customers and stakeholders alike.

Blackstone’s foray into Israeli tech is not merely a financial maneuver but a strategic investment poised to capitalize on the exponential growth opportunities in the sector. Yifat Oron, Senior Managing Director at Blackstone, highlighted the synergy between Blackstone’s expertise in the software space and Priority Software’s innovative solutions. This alignment positions Blackstone as an ideal growth partner for Priority Software, enabling it to further solidify its position as an industry leader.

The acquisition marks Blackstone’s largest deal in Israel since the establishment of its offices in 2021, signalling its confidence in the country’s burgeoning tech ecosystem. Israel, often dubbed the “Startup Nation,” has gained global recognition for its culture of innovation and entrepreneurial spirit. Blackstone’s investment in Priority Software not only bolsters the company’s growth prospects but also underscores Israel’s status as a hub for groundbreaking technology ventures.

The transaction sees Blackstone acquiring Priority Software from Israeli private equity fund Fortissimo and the American investment fund TA Associates. This move consolidates Blackstone’s position in the Israeli market while providing Priority Software with the resources and support needed to fuel its expansion initiatives.

With assets under management totalling $1.06 trillion, Blackstone stands as the largest private equity fund globally, underlining its formidable presence in the financial landscape. The acquisition of Priority Software further diversifies Blackstone’s portfolio, positioning the company to capitalize on the transformative potential of enterprise software solutions.

Image credit: The Blackstone headquarters in New York. Photographer: Michael Nagle/Bloomberg


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