Insight Partners is weighing a sale of property-management-software provider InhabitIQ in a deal that could draw almost $1.8 billion, three sources familiar with the process told Buyouts.
Multiple tech bankers have pitched to advise the company on its sale, sources said. The seller is likely to award a mandate in a few weeks, they said.
The process is likely to kick-off after Christmas, one of three sources said.
The company, based in Knoxville, Tennessee, provides technology and software services for rental operations, including multifamily, single family residential, vacation rentals, student and affordable housing and commercial property. Its technology services include management software, trust accounting, distribution channel management, online marketing, trip and damage insurance, among others.
InhabitIQ was created through a merger of Insight Partners-backed Property Brands, a technology and software provider for property management companies, and Vacation Brands, a vacation rental technology provider backed by Greater Sum Ventures.
The rebranding of the company happened in September to make it easier for property managers to access the integrated technologies to manage their property portfolios, the spokesperson for Insight Partners told Buyouts.
Greater Sum Ventures holds a minority position, the sources said.
Along with the rebranding, Lisa Stinnett, founder and managing director at GSV, also became a CEO of InhabitIQ.
InhabitIQ generated $75 million Ebitda in the last 12 months, and its forward Ebitda is projected to be $85 million, the sources said.
The sale of InhabitIQ is expected to draw $1.8 billion, or 21x forward Ebitda, the first source said.
Prior to merger, both companies grew through multiple add-ons.
In April, Property Brands acquired SiteCompli, a provider of compliance monitoring, reporting and alerting technology for property owners and managers in New York.
In June, Vacation Brands acquired iTrip, a vacation home rental booking website.
PE has been active in rental technology. TA Associates and GI Partners are said to be exploring options for MRI Software, a software company tailored for property management, Buyouts reported in September. If the firms decide to pursue a full sale, MRI Software will trade for $2.5 billion to $3.5 billion, the sources said.
Insight Partners declined to comment. GSV and InhabitIQ did not return requests for comment.
Action Item: Check out Insight Partners’ form ADV.