Skift Take
Justin Dawes
Travelsoft announced on Thursday that it has acquired three technology companies. France-based Travelsoft is primarily focused on providing travel agents and tour operators with technology that streamlines the process of selling and marketing travel packages.
The three companies acquired by Travelsoft provide B2B services in this space.
- Spain-based TravelgateX provides a technology platform that connects accommodation suppliers and sellers.
- UK-based Atcore Technology provides a booking and inventory platform for travel agents, as well as technology for packaging, pricing and distributing 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 workforce to 600 employees.
- Travelsoft says its platform has facilitated bookings worth a total of 35 billion euros ($37.9 billion). Before the deal, the amount was 5 billion euros ($5.4 billion).
- The company said its current annual recurring revenue has increased from 43 million euros ($46.6 million) to 100 million euros ($108.3 million).
- Travelsoft's major clients have now grown from 300 to 400, and travel suppliers from 600 to 1,000.
Acquisition scandal
This is Travelsoft's sixth acquisition since 2022, with the group now including seven companies.
Earlier this year, Travelsoft bought Eventise Group, an events organizer and owner of three publications for the French tourist and business travel industry, after the company was in financial difficulty and in a court-supervised restructuring process to work out a plan to repay 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 industry is ripe for consolidation, as evidenced by multiple deal announcements in the past few weeks alone. Hotel technology startup Muse, for example, made its ninth acquisition this month.
Investment bank AGC Partners is one company that believes merger and acquisition activity is on the rise. The company published analysis on the subject last month and said it was poised for further 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.”
The strategy has seen these companies invest in companies such as Muse and Travelsoft to fund growth through acquisitions.
Photo credit: Travelsoft has acquired three companies.
