After a slow trading start, the Bailador Technology Investments Limited (ASX: BTI) share price is lifting on positive acquisition news from the company’s subsidiary.
At the time of writing, the Bailador share price has finally slipped out of the starting blocks, trading up 1.43% at $1.42.
Let’s look closer at what Bailador announced today.
Big acquisition
In its release, Bailador advised that its subsidiary Instaclustr, an open-source software provider, has acquired Germany and US-based Credativ. Also an open-source software provider, credativ brings more than 500 customers to the party and adds to Instaclustr’s software and services suites.
Open-source software is software released under certain licenses that allow free public access to its source code. Both companies mostly market their software, data-infrastructure solutions and support services to businesses.
Bailador said that Instaclustr’s acquisition of credativ had significantly expanded its subsidiary’s size and scale. Instaclustr said the acquisition has added new technologies to its offerings and would improve its engagement with organisations across Europe.
While Bailador said the acquisition added “significant scale”, its valuation of Instaclustr remained unchanged as there was no third-party transaction to value the consolidated entity.
Commentary from management
Bailador co-founder and managing partner David Kirk praised Instaclustr’s position as a standout performer in the company’s portfolio.
The acquisition of credativ adds to the capabilities of the company and further strengthens its strategic position.
The acquisition adds new fast-growing technologies to the current platform and enables the company to continue to benefit from the structural tailwinds of massive growth in data, migration to the cloud and the adoption of open-source technologies.
Instaclustr CEO Peter Lilley added the company looked forward to reaching more businesses after its acquisition.
credativ brings a potent combination of particularly strong technical expertise across key open source data-layer solutions, and proven experience leading enterprises through future-proof implementations and digital transformations using those technologies.
Our mission to enable the world’s ambitions through open source technologies has taken a big leap forward.
Credativ’s former top management have accepted senior executive roles in the expanded group.
Bailador share price snapshot
The Bailador share price is enjoying a fruitful 2021. Currently, it has a year-to-date return of 20.6%. It is also up by 87.9% over the past 12 months.
At the time of writing, Bailador’s shares are trading for $1.42. The technology investment company has a market capitalisation of $172 million and approximately 122 million shares outstanding.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Bailador Technology Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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