(Bloomberg) -- Blackstone Group Inc. acquired a minority stake in ISN Software Corp. at a valuation of more than $2 billion, bolstering a push to invest in fast-growing technology companies.
The New York-based company invested about $500 million in ISN, according to a person familiar with the matter who asked not to be identified speaking about the terms of the investment. ISN's software helps businesses manage third-party relationships with contractors and suppliers to ensure they meet compliance standards.
Blackstone is seeking out growth equity deals after hiring Jon Korngold last year to run a new group focused on the sector. Its acquisitions have included dating app Bumble and health-care technology company HealthEdge.
The alternative asset manager will be the only outside stockholder in employee-owned ISN, Blackstone said in a statement Thursday. The investment will help drive ISN's expansion across products and into new markets and geographies.
“Companies and boards around the world are increasingly focused on ensuring the highest standards for risk management, compliance and ESG reporting,” Vini Letteri, a senior managing director at Blackstone Growth, said in the statement. “We believe ISN is leading the way, and that Blackstone can be a key partner in supporting its further growth.”
ISN, established in 2001 and based in Dallas, has more than 650 clients that use its ISNetworld platform to manage compliance data for more than 75,000 contractor subscribers.
The platform includes tools and data to help companies mitigate risks in areas such as supply chain continuity, regulatory matters, sustainability and training.
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