Genstar Capital Announces Sale of Leading Hotel Software Provider TravelClick For $930 Million
focuses on investments in targeted segments of the software, financial services, healthcare, and industrial technology industries, today announced that it has signed a definitive agreement with Thoma Bravo, LLC to sell its portfolio company TravelClick, a global provider of innovative cloud-based software solutions to the hospitality industry, for $930 million.
create a strong brand. Genstar and Bain Capital Ventures acquired TravelClick in 2007. Since the acquisition, the company has more than doubled revenue and EBITDA, gained market share, and solidified its leadership position as the only player in the industry to offer the breadth, depth and global reach of products and services.
Larry Kutscher, CEO of TravelClick, said, "Our strong working partnership with Genstarand Bain allowed us to significantly invest in our business to drive growth both organically and through two significant acquisitions, which include the purchase of Rubicon and EZYield. By updating our technology, building out our business intelligence offering, implementing a new reservation booking engine, and nearly doubling our sales force, we were able to grow distribution channels and new products. We have become a key partner to our global hotel clients as they rely on TravelClick's rich industry data, technology and marketing solutions to continue to enhance their competitive position and increase bookings and revenue."
This transaction will enable TravelClick to further grow organically and give the companythe ability to continue to acquire new capabilities to support its vision for unrivaled end- to-end cloud software solutions for the travel industry.
The company's clients are diverse, and include independent properties, chain hotels,management companies, and other travel businesses. Select clients include Hilton Hotels & Resorts, Crown Hotels Australia, Loews® Hotel & Resorts, Colwen Hotel Management, Grange Hotels, The Address Hotels & Resorts Dubai and The Bryant Park Hotel.
Mark Hanson, Managing Director of Genstar, said, "We are proud of how the TravelClickteam has grown and extended the Company's market leadership in the hospitality data and software sector over the past seven years. Recruiting a strong management team, led by our outstanding CEO, Larry Kutscher, was key to accelerating the company's growth and enhancing the customer experience."
Jean-Pierre L. Conte, Chairman and Managing Director of Genstar Capital, said,"Genstar launched its software industry focus seven years ago and this sale is a strong validation of our strategy of driving improvements in vertical market leaders. Larry and his team have delivered outstanding results. I also want to thank Genstar Strategic Advisory Board members, David Schmaier and Bob Dowdell, whose considerable software industry experience added value at a Board level from day one."
TravelClick provides innovative Software as a Service (SaaS) solutions for hotels aroundthe globe to grow their revenue, reduce costs, and improve performance. TravelClick offers hotels world-class reservation solutions, cloud-based business intelligence products and comprehensive media and marketing solutions to help hotels grow their business. With local experts around the globe, TravelClick is deployed by more than 37,000 hotel properties in over 150 countries to drive profitable room reservations through better revenue management decisions, proven reservation technology and innovative marketing. Since 1999, TravelClick has helped hotels leverage the web to effectively navigate the complex global distribution landscape.
The transaction is expected to close in the second quarter of 2014. Evercore acted asexclusive financial advisor to Genstar and TravelClick, and Ropes & Gray acted as legal advisor.
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