In a sensational and unexpected announcement, key SiteMinder shareholder Bailador Technology Investments has revealed that company owners are considering a stock market listing of the hotel tech and distribution business, which has more than 30,000 customers in 160 countries.
Bailador broke ranks with the news, which wasn’t flagged with other shareholders, and also upwardly revised SiteMinder’s valuation by 38% in the 12 months to June, making its stake in the business worth $55.9 million, a 305% increase on its $13.8 million investment.
SiteMinder is by far the best investment for Bailador, which has a share price of 84 cents almost four years after listing for $1 in late 2014.
TravelTrends.biz estimates that Bailador owns 11% of SiteMinder – a figure that has never been confirmed or disputed – which would make SiteMinder worth at least $500m based on Bailador’s recent valuation.
Here’s what Bailador said: “SiteMinder’s valuation has not been adjusted for more than a year and continued excellent performance requires a move.
“SiteMinder has all the attributes of the very best global software-as-a-service businesses – strong revenue growth, high gross margins and a very large market to grow into.
“SiteMinder is the runaway world leader in its markets (and) already has the scale and attributes to be a top tier ASX technology stock if listed, and together with the other SiteMinder shareholders we continue to consider this pathway.
“In addition, SiteMinder’s strategic position continues to strengthen, meaning that it is an attractive acquisition candidate in due course for a number of very large global companies.”
Mike Ford, co-founder of SiteMinder, was contacted for comment but declined.
SiteMinder is best-known for its channel manager, which facilitated 72 million hotel reservations in 2018 and US$21.53 billion in gross revenue.