skift take
Justin Dawes
TravelSoft announced Thursday that it has acquired three technology companies. France-based Travelsoft focuses on providing travel agents and tour operators with technology that streamlines the process of selling and marketing travel packages.
The three companies that Travelsoft acquired provide B2B services in that space.
- Spain-based TravelgateX provides a technology platform that connects accommodation suppliers and sellers.
- UK-based Atcore Technology not only provides a booking and inventory platform for travel companies, but also the technology to package, price and sell travel packages.
- Romania-based Travel Connection Technology provides a technology platform that integrates contracts, inventory management, sales channels, reservation management, and financial accounts.
TravelSoft said each company will maintain its autonomy, including keeping its brand names, leadership teams and its technology platforms.
The acquisition price was not disclosed, but other details are as follows:
- The deal will nearly triple Travelsoft’s employee base to 600.
- Travelsoft says its platforms now process bookings worth 35 billion euros ($37.9 billion), up from 5 billion euros ($5.4 billion) before the acquisition.
- The company said it currently has recurring revenues totaling 100 million euros ($108.3 million), up from 43 million euros ($46.6 million) a year.
- Travelsoft’s core customers have now grown from 300 to 400 companies, and its travel suppliers have grown from 600 to 1,000 companies.
Acquisition Rush
This is Travelsoft’s sixth acquisition since 2022, and the group now includes seven companies.
Earlier this year, Travelsoft acquired Eventise Group, which owns three publications and organizes events for the French tourism and business travel industry. The company was in financial trouble and was proceeding with restructuring procedures under court supervision and a repayment plan to creditors.
Travelsoft’s first portfolio company was Orchestra, followed by the acquisition of Germany-based Traffics in 2022 and Spain-based Travel Compositor in 2023.
Private investment firm Capza invested in Travelsoft in 2023, taking a minority stake in the company. The investment has helped Travelsoft continue its acquisition spree, according to the company.
Industry experts say the space is ripe for consolidation, as evidenced by multiple acquisition announcements in the past few weeks alone, such as hotel tech startup Mews’ ninth acquisition this month.
Investment bank AGC Partners is among those who see an uptick in merger and acquisition activity, having published an analysis on the subject last month and saying the stage was set for more deals.
AGC said those factors include an improved funding environment and the fact that high-tech private equity firms have access to about $300 billion, adding that “the real action is still to come.”
One of the strategies of these companies is to invest in companies like Mews and Travelsoft to fund growth through acquisitions.
Photo credit: Travelsoft has acquired three companies.
