Blackstone to acquire majority stake in Priority Software

Blackstone to acquire majority stake in Priority Software

Tel Aviv, Israel; May 16, 2024 — Blackstone today announced that Blackstone Growth and affiliated funds (collectively “Blackstone”) have entered into a definitive agreement to acquire a majority stake in Priority Software, a leading provider of mission-critical business software. Blackstone's investment will help build on the company's position at the forefront of the ERP software market and support its further growth across industries and markets.

Priority Software offers robust mission-critical business applications and ERP solutions across various industries, enhancing business management through innovative, cloud-based applications. The company's comprehensive product suite, which includes solutions for retail management, hospitality and education, is supported by a network of 100+ partners worldwide. Its solutions play a critical role in automating complex processes and centralizing data management, helping businesses drive growth, optimize operations and, ultimately, enhance profitability while ensuring they are well-equipped to meet future challenges and capitalize on new opportunities in their respective markets. The company has more than 17,000 customers and over 300,000 end users across multiple end markets. Priority has 500+ employees located across five offices in Israel, the US, and Belgium.

Yifat Oron, Senior Managing Director at Blackstone and head of its Israel office, said, “Priority Software has grown into a leader within the ERP market by developing business application software – both horizontal and vertical – that caters to the holistic needs of companies across sectors from their early days, through every stage of growth and, ultimately, at scale. Given our extensive experience in the software space – as well as the significant insight we glean from our global reach and more than 230 portfolio companies, including in hospitality, industrials, life sciences, energy and beyond – we believe Blackstone is well-positioned as a growth partner for this exceptional business.”

Sagive Greenspan, CEO of Priority Software, said ״The decision by Blackstone to partner with Priority Software is a testament to the strength of our business and the tremendous market opportunity that lies ahead. With Blackstone's support, we are well-positioned to accelerate our growth trajectory, deepen our market penetration, and solidify our position as a leader in the industry. We are excited about the possibilities this partnership brings and remain steadfast in our commitment to driving וunparalleled value for our customers and stakeholders. ״

Yuval Cohen, Manager Partner at Fortissimo Capital, said, “Fortissimo Capital is proud to have partnered with the Priority Software team and to have played a role in the company's rapid growth for over a decade. We remain confident in Priority Software's potential in Israel due to its leadership position, loyal customer base, superior technology, and the prospect of continued global expansion. We are excited to welcome Blackstone as a new partner to further accelerate Priority Software's growth.”

Stefan Dandl, Director at TA Associates, said, “Working in partnership with Sagive, the Priority management team and Fortissimo, we are proud to have delivered significant organic and inorganic growth for the company over the last three years. Blackstone's new investment underscores the strength of Priority's strategy and the continued opportunity that lies ahead. We look forward to deepening our partnership with Priority and harnessing the collective expertise of TA, Blackstone and Fortissimo to further accelerate the company's growth journey.”

Evercore acted as exclusive financial advisor to Priority, Fortissimo and TA, and Goodwin and Gornitzky provided legal counsel. Kirkland & Ellis and Meitar provided legal counsel to Blackstone. Terms of the transaction were not disclosed.

Priority has four main offerings: 1) Priority Business Applications (ERP solutions), 2) Priority Retail, a complete omnichannel, all-in-one retail management solution, 3) Priority Hospitality, a next-gen property management software and 4) Priority Education, pedagogical management software serving schools. Its wide range of offerings across horizontal and vertical markets allows for companies to optimize their business management with a comprehensive platform.

About Blackstone

Blackstone is the world's largest alternative asset manager. We seek to deliver compelling returns for institutional and individual investors by strengthening the companies in which we invest. Our more than $1 trillion in assets under management include global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries and hedge funds.

About TA

TA is a leading global private equity firm focused on scaling growth in profitable companies. Since 1968, TA has invested in more than 560 companies across its five target industries – technology, healthcare, financial services, consumer and business services. Leveraging its deep industry expertise and strategic resources, TA collaborates with management teams worldwide to help high-quality companies deliver lasting value. The firm has raised $65 billion in capital to date and has over 150 investment professionals across offices in Boston, Menlo Park, Austin, London, Mumbai and Hong Kong.