The Bailador Technology Investments Ltd (ASX: BTI) share price is pushing higher on Friday after providing an update on one of its key investments.
At the time of writing the technology-focused investment company’s shares are up 0.5% to $1.11.
What did Bailador announce?
This morning Bailador announced that it has entered into a definitive agreement to sell approximately $10 million of its current holding in hotel guest acquisition software company SiteMinder.
According to the release, the sale price implies an enterprise valuation of $1.1 billion, making SiteMinder the latest Australian unicorn.
The release explains that the cash realisation was initiated during SiteMinder’s recent equity raising, which generated strong demand from a large number of high quality international and Australian investors.
These transactions have resulted in globally recognised funds such as BlackRock, AustralianSuper, Ellerston, and Pendal Group Ltd (ASX: PDL) joining the SiteMinder register.
This certainly has been a successful investment for Bailador. The multiple on the sale price is 21x Bailador’s original investment. Importantly, the sale represents only a minority portion of Bailador’s holding.
Bailador’s co-founder and managing partner, Paul Wilson, said: “We are delighted to see strong investment demand for SiteMinder from such high-quality investors globally; it’s a testament to the tremendous progress and global scale that the team has achieved to date.”
“SiteMinder has been a terrific investment for our shareholders and we strongly believe there is significant valuation upside to come. We look forward to continuing our close working relationship with the SiteMinder Board and executive team to achieve this outcome,” he added.
What is SiteMinder?
Australia’s newest unicorn is a hotel guest acquisition software company.
In 2019 it processed 105 million bookings through its platform for more than 35,000 hotels worldwide.
This led to it surpassing A$100 million in annual recurring revenue—80% of which is generated from international markets, through both monthly subscriptions and newer transactional revenue streams.
With stats like this, I wouldn’t be surprised to see it hitting the ASX or Nasdaq boards in the future.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.