Utility firm NiSource said on Tuesday that asset manager Blackstone's infrastructure unit has agreed to acquire a 19.9% equity interest in its unit NIPSCO for $2.15 billion.

NIPSCO is an integrated electric and gas distribution unit that operates in Indiana and serves about 1.3 million customers.

NiSource would hold the remaining stake and continue to operate the company.

The transaction is expected to close by the end of 2023.

(Reporting by Sourasis Bose in Bengaluru; Editing by Shilpi Majumdar)