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In brief: Blackstone pays $1.4bn for ESG software provider

The deal comes as the firm is building out its ESG credentials.

Blackstone agreed to acquire Sphera, a Chicago-based ESG software, data and consulting services provider, from private equity firm Genstar Capital for $1.4 billion.

The deal, which was made through the firm’s flagship private equity strategy, adds to Blackstone’s portfolio a company that measures and manages the ESG performance and risk exposure of 3,000 customers operating in 100 countries.

“The increasing importance of environmental, social, governance issues to businesses globally is a key thematic investing focus for Blackstone,” Eli Nagler, a senior managing director at the firm, said in a statement.

Blackstone has expanded its focus on ESG this year through different initiatives including the hiring of senior staff focused on sustainable investments and diversity, equity and inclusion, and asking executives of its portfolio companies to report on ESG matters to their boards.