Private equity heavyweight Blackstone Group Inc. (NYSE:BX) is reportedly on the verge of a $2.5 billion agreement to acquire Civica, a U.K.-based software developer.

The Civica acquisition is one of at least two multibillion-dollar deals that Blackstone is currently pursuing in Europe, indicating a rise in private equity activity in the region. Civica, presently owned by Switzerland-based investor Partners Group, was purchased in 2017 for £1.1 billion, or roughly $1.4 billion.

Civica provides software services to over 6,000 public agencies in sectors such as education, government, and healthcare. It generates recurring revenue from the sale of software used in payroll, medical records, and property management, among other services.

See Also: Crypto Expert Says Bitcoin Could Skyrocket By Over 600% Thanks To This Catalyst

Why It Matters: Although no specific context articles are provided, it’s worth noting that this acquisition is emblematic of Blackstone’s strategic expansion in Europe and, more specifically, the United Kingdom. The deal not only signifies the firm’s diversification into the software industry but also highlights a growing trend of private equity firms investing in tech companies.

Furthermore, Civica’s broad customer base across public sectors and its ability to generate recurring revenue aligns with Blackstone’s investment profile of targeting high-growth, stable cash flow businesses. This move could potentially strengthen Blackstone’s position in the European market and expand its portfolio of tech investments.

Read Next: If You Invested $100 In Dogecoin When Elon Musk First Tweeted About The Crypto, Here’s How Much You’d Have Today