Genstar in 3.8x software exit to Thoma Bravo

The firm will sell hospitality software company TravelClick for $930m. 

Genstar Capital Management will sell cloud-based software company TravelClick to Thoma Bravo for $930 million, according to a statement.

Genstar declined to disclose a return multiple for the deal, but a source with knowledge of the situation said the exit generated a 3.8x return. TravelClick provides hospitality companies with software products aimed at increasing revenue and reducing costs. Genstar acquired TravelClick in 2007 alongside Bain Capital Ventures and made the investment from its $1.55 billion Fund V.

During the holding period, Genstar helped TravelClick double revenue and earnings before interest, tax, depreciation and amortisation, the statement said. The exit, which is expected to close during the second quarter of 2014, marks Genstar’s first of 2014.

San Francisco-based Genstar is investing from its Fund VI, which closed in January 2013 on $912 million. The firm invests in mid-market companies in the life sciences, healthcare, financial services, software and industrial technology sectors.

Thoma Bravo is currently raising its Fund XI, which has a $2.5 billion target. The firm’s $1.25 billion Fund X closed in 2012.

Thoma Bravo typically invests between $50 million and $300 million in businesses in the enterprise and infrastructure software and financial and business service sectors, backing companies with earnings before interest, tax, depreciation and amortisation of more than $20 million, according to its website.