Private equity firm Hellman & Friedman has commenced the sale process for its Texas-based energy software company, Enverus, in a deal that could be worth about $6 billion, according to insider sources. The company is reportedly working with Citi investment bankers on the potential transaction, which has sparked interest from rival private equity firms and corporate buyers.
Sources say the process is still in the early stages and could result in various outcomes, including the sale of a partial stake rather than the entire company. While Genstar Capital, which sold Enverus to Hellman & Friedman for $4.25 billion in 2021, retains a minority stake, none of the involved parties, including Citi, Genstar, or Enverus, have issued public comments.
Based in Austin, Enverus offers analytics, data, and software solutions to the oil and gas industry and generates approximately $400 million in annual EBITDA. Valued at roughly 15 times its EBITDA, the company could fetch up to $6 billion, reflecting strong demand for digital solutions in the energy sector.
The possible sale of Enverus comes amid growing pressure on private equity firms to cash out portfolio companies after a sluggish year for deal-making. Just last week, Blackstone was reported to be exploring a $3 billion sale of its sustainability software firm, Sphera, highlighting renewed activity in the private equity space.