The Blackstone Group (BX) recently announced that it has entered into a definitive agreement to make a significant investment in Simpli.fi, a leader in programmatic advertising and agency management software. The investment values Simpli.fi at about $1.5 billion. Blackstone will join GTCR, a private equity firm, to acquire a majority stake in the company.
Following the news, shares of the investment firm rose marginally to close at $99.25 in Monday’s trading session.
Texas-based Simpli.fi specializes in assisting agencies and media groups through its full suite of mission-critical workflow and ad buying software. Every month, the company caters to about 30,000 active subscribers through more than 120,000 campaigns.
A Managing Director at Blackstone, Sachin Bavishi, said, “Simpli.fi’s highly differentiated technology platform and superior customer service have made it a clear leader in its space. Digital advertising is a high-conviction investment theme at Blackstone and Simpli.fi sits at the intersection of multiple attractive tailwinds, including the continued shift in local media spend to programmatic digital and CTV.” (See Blackstone stock chart on TipRanks)
On May 24, Citigroup analyst William Katz reiterated a Hold rating on the stock but raised the price target from $75.50 to $91, which implies downside potential of 8.3% from current levels.
Consensus among analysts is a Strong Buy based on 9 Buys and 3 Holds. The average Blackstone price target of $91.91 implies downside potential of 7.4% from current levels. Shares of the company have gained 77.8% over the past year.
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