U.S. Markets close in 1 hr 8 mins

Genstar Close to Buying RS Energy From Warburg

Nabila Ahmed and Kiel Porter

(Bloomberg) -- Warburg Pincus is nearing a sale of portfolio company RS Energy Group to Genstar Capital in a deal that values the energy research group at about $1 billion, including debt, according to people with knowledge of the matter.

Genstar plans to merge the Calgary-based firm with portfolio company Enverus, a rival energy market data and analysis provider, said the people, who asked to not be identified because the matter isn’t public. Genstar could announce a deal for RS Energy as soon as this month, the people said.

No final decision has been made and talks could fall through, they said.

Representatives for Warburg and Genstar declined to comment. Representatives for RS Energy and Enverus didn’t respond to requests for comment.

Warburg acquired RS Energy in 2015 from Investment Technology Group Inc. for about $120 million, according to data compiled by Bloomberg. The company has made at least two acquisitions since then.

Austin, Texas-based Enverus, originally known as Drilling Info, was purchased by Genstar from Insight Venture Partners in 2018.

To contact the reporters on this story: Nabila Ahmed in New York at nahmed54@bloomberg.net;Kiel Porter in Chicago at kporter17@bloomberg.net

To contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, Matthew Monks, Michael Hytha

For more articles like this, please visit us at bloomberg.com

©2020 Bloomberg L.P.