Travel technology provider Amadeus has continued its expansion into the hospitality sector with an agreement to acquire global hospitality solutions provider Travelclick for US$1.52 billion.
Headquartered in New York City, Travelclick is currently owned by private equity investment firm Thoma Bravo. It serves more than 25,000 customers across 176 countries with cloud-based solutions, including an independent and mid-size central reservation system and guest management solution, as well as business intelligence and media solutions. The company says this gives hotels distribution across both digital and traditional channels and enables digital guest interactions, increased revenue, reduced costs and brand awareness.
As part of the acquisition, about 1,100 Travelclick employees are expected to join Amadeus. The sale is expected to close in the fourth quarter of 2018, subject to regulatory approval.
Luis Maroto, president and CEO of Amadeus, commented: “Travelclick has a great team, great technology and a broad customer base, and we are looking forward to welcoming such a successful business into Amadeus. Our ambition is to provide the hospitality industry with the tools they need to grow their businesses and deliver a great experience to their guests. The combination of our two portfolios will allow us to provide that to hotels of all shapes and sizes across the world.”
Larry Kutscher, CEO of Travelclick, added: “This deal marks the next stage in Travelclick’s incredible journey of success in delivering groundbreaking solutions for hoteliers. I couldn’t be more proud of our team or more excited about the impact our combined companies will have on the hospitality industry as we begin to deliver the next generation of innovation for hoteliers.”
Francisco Perez-Lozao, senior vice president of strategic growth business at Amadeus, said: “This is a huge step forward for Amadeus in hospitality. While we have already made strong progress with the large chains, Travelclick gives us access to the mid-chain and independent hotel segment that makes up almost three-quarters of the market. We can now serve the entire industry with a very broad portfolio of solutions and we are looking for significant growth in the years ahead.”
Holden Spaht, managing partner at Thoma Bravo, added: “We appreciate the outstanding execution of Larry Kutscher and the management team at Travelclick, and believe the company is well positioned to continue delivering innovative software, data analytics and marketing services that maximise revenue for hotels around the world.”