Amadeus digs into deep pockets to acquire TravelClick
Amadeus IT, a giant provider of information technology services to the travel industry, has paid $1.52 billion to acquire TravelClick, a “global hospitality technology provider”. TravelClick provides a range of services to hoteliers and other players in the hospitality game that is broadly equivalent to what Amadeus does in the travel industry. Offerings include cloud-based solutions like “independent and mid-size hotel central reservation” systems, guest management solutions, and business intelligence.
Amadeus’s share price has appreciated by 23% so far this year
SOURCE: Yahoo Finance
TravelClick is a market leader: it has more than 25,000 clients worldwide, spread across 176 different countries. It will add around 1,100 employees to Amadeus, and be rebranded (at least initially) as ‘TravelClick, an Amadeus company’. Describing why this acquisition marked an “important step” into the hospitality sector, Amadeus CEO Luis Maroto said:
“The addition of TravelClick significantly enhances our presence in the hospitality industry, not only broadening our product portfolio but also our know-how and global presence. In a highly fragmented market, Amadeus now has the people and the technology to help all hoteliers rise to the challenge of delivering a great experience for their guests.”
The new purchase will sit inside Amadeus’s existing hospitality customer unit, led by Francisco Perez-Lozao. Explaining the value that TravelClick will bring to his unit, Perez-Lozao said: “There’s a huge opportunity in the hospitality market for a technology provider that can unite separate systems and give hoteliers a single view of their guests, in turn allowing them to serve the customer better, drive new revenue opportunities and manage their costs. That is our ambition for the industry and we’re excited to bring the TravelClick team on board and start working together to that aim.”
Dominion holds Amadeus IT in its Global Trends Ecommerce Fund.
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