Australian private equity firm BGH Capital has invested an undisclosed amount in local travel tech company TripADeal, according to an announcement.
Deal terms remain undisclosed but local media has reported that the private equity firm has acquired a 55 per cent stake in the firm.
TripADeal said BGH Capital was in talks with the company late last year just before the COVID-19 health pandemic.
“We knew they were the ideal fit,” TripADeal’s co-founding CEOs Norm Black and Richard Johnston jointly said.
“BGH has significant experience in tourism and their partners share our vision for growth as the travel industry takes off post-COVID-19.”
The investment was said to capture an anticipated industry rebound as travellers turn to online travel post border lockdowns.
TripADeal claimed its revenue has been growing by over 40 per cent per annum. “As an online business we were not weighed down by expensive brick-and-mortar stores, allowing us the agility to pivot our resources to supporting our customers and travellers stranded across the world,” the company said.
“We have always been attracted to TripADeal’s position as an online travel agent. The disruption posed by COVID-19 will ensure they continue to benefit from strong industry tailwinds and the bricks-and-mortar shift to online,” commented BGH Capital’s founding partner Ben Gray.
BGH Capital’s maiden fund, which closed at A$2.6 billion ($1.9 billion) in 2018, is the largest private equity vehicle focused on Australia and New Zealand.
Before BGH Capital, Ben Gray and his co-founder Simon Harle established and led the Australian and New Zealand private equity team at TPG Capital, while Robin Bishop, the third co-founder, was previously head of Macquarie Capital Australia and New Zealand.
BGH Capital has recently reached agreements to take over cinemas and theme park group Village Roadshow Limited for an enterprise value of A$758 million, and Healius Ltd’s primary care business for A$500 million.