Blackstone Acquires Irth Solutions; Street Says Buy


This article was originally published on TipRanks.com

Private equity major Blackstone Inc. (BX) recently revealed that its energy-focused investment business, Blackstone Energy Partners, has agreed to acquire a cloud-based asset protection solutions provider, Irth Solutions. The financial terms of the deal, which is likely to close by the end of December, have been kept under wraps.

Following the news, shares of the company declined 2.7% on Wednesday. The stock, however, pared its losses slightly to close at $138.50 in the extended trading session.

The acquisition will help Blackstone gain access to Irth’s solutions that automate processes for damage prevention and asset protection across critical network infrastructure assets. Further, its risk management capabilities for its wide customer base across different sectors will allow Blackstone to continue focusing on investing in companies that support critical infrastructure and the global energy transition.

Post the buyout, Irth Solutions will retain its name and continue to operate independently as a Blackstone portfolio company.

Management Commentary

The Managing Director at Blackstone, Kush Patel, said, “Irth is well-positioned to benefit from the tailwinds impacting each of the company’s end-markets. Irth can be a key partner for electric utilities, telecom companies and energy infrastructure operators as they improve and expand operations, while reducing environmental impacts. We look forward to working with Brad and his team to capitalize on these trends.”

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Price Target

Last month, Bank of America Securities analyst Craig Siegenthaler initiated coverage on the stock with a Buy rating. The analyst’s price target of $182 implies upside potential of 32.2% from current levels.

According to the analyst, growth visibility in the retail sector can drive earnings upwards for the company in the future.

Consensus among analysts is a Strong Buy based on 9 Buys and 3 Holds. The average Blackstone price target of $150.91 implies upside potential of 9.6% from current levels.

Smart Score

Blackstone scores a 7 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations. Shares have gained 123.5% over the past year.

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