Blackstone-Backed Software Firm ISN Mulls $6 Billion Sale

(Bloomberg) — ISN Software Corp. is exploring options including a sale that could value the compliance software firm at $6 billion or more including debt, according to people familiar with the matter.

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Dallas-based ISN, which is backed by Blackstone Inc.’s growth equity arm, is talking to investment banks about a potential sale of all or part of the company that could take place as soon as this year, the people said. The company has already attracted takeover interest from industry players and other private equity firms, they said.

Deliberations are still at a preliminary stage and there’s no certainty that ISN will choose to pursue a deal, the people said, asking not to be identified discussing confidential information. Representatives for ISN and Blackstone declined to comment.

ISN was valued at $2 billion at the time of Blackstone’s minority investment in 2020. A sale of the company would come at a time of increasing demand for compliance software that can help companies meet regulatory demands and manage cybersecurity risks.

ISN provides contractor and supplier information management software. Its ISNetworld platform is used by roughly 850 companies including Exxon Mobil Corp., Honeywell Inc. and Cisco Systems Inc. to identify contractors that meet health, safety, cybersecurity and environmental, social and governance standards.

The company was founded in 2001 and controlled by William Addy, Executive Chair Joseph Eastin and Chief Executive Officer Brian Callahan. Its smaller rival Avetta LLC was acquired last year by buyout firm EQT AB in a deal that valued it at roughly $3 billion, or 24 times Avetta’s projected 2024 earnings of $125 million before interest, taxes, depreciation and amortization, Bloomberg News reported at the time.

(Updates with Blackstone entity in second paragraph.)