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Hellman & Friedman begins sale process of US software company Enverus.

By Milana Vinn

Hellman & Friedman, a private equity firm, has begun a process to sell Texas-based software company Enverus. The deal could be worth around $6 billion according to sources familiar with the situation.

According to the person who requested anonymity because the discussion is private, the private equity firm and investment bankers of Citi are working together on the possible sale. This has drawn interest from private equity firms as well as other companies.

People said that the sale process was in its infancy and there were multiple options on the table. One of them included selling a stake within Enverus. They cautioned, however, that no deal would be guaranteed.

Genstar Capital still holds a small stake in Enverus, the technology company that was sold to Hellman & Friedman for $4.25billion in 2021.

Citi and Genstar refused to comment. Hellman & Friedman, Enverus and Citi did not reply to requests for comment.

Enverus, based in Austin, Texas, provides oil and gas companies with data, analytics and software solutions.

Sources said that Enverus generated around $400 million of annual earnings before interest taxes, depreciation and amortization. It is likely to be worth close to 15 times EBITDA or $6 billion.

Bloomberg reported that in 2024, private equity owners were exploring the possibility of selling or IPOing Enverus.

Investors are increasing the pressure on private equity firms to sell portfolio companies or list them in an IPO to return capital following a year with little activity.

Blackstone has been reported to be exploring the sale of Sphera - a software and consultancy services provider that specializes in sustainability. (Reporting from Milana Vinn, New York; additional reporting from Amy-Jo Crowley, London; editing by Dawn Kopecki & Cynthia Osterman).

(source: Reuters)