Private equity firm Genstar Capital Management is selling off hospitality software company TravelClick to another private investor, Thoma Bravo LLC, for $930 million, the companies announced Tuesday.
Genstar, which has $3 billion in capital, acquired TravelClick in 2007 with Bain Capital Ventures and has more than doubled its revenue since then, the company said. TravelClick provides cloud computing services for hotels, covering reservations, guest management, market share information and public relations.
“The hospitality technology market is becoming increasingly dynamic and complex, with customers requiring better analytical and revenue-enhancing tools,” Thoma Bravo principal A.J. Rohde said in a statement. “As global hotel providers look to maximize revenue per available room, TravelClick’s integrated suite of software, data and marketing services is well poised to meet these needs, and we plan to support continued innovation to the highest degree.”
Under Genstar's control, TravelClick merged with competitor Rubicon and channel management company EZYield, updated its booking engine, and doubled its sales force, according to the software company.
TravelClick's clients include Hilton Hotels & Resorts, Crown Hotels Australia, Grange Hotels and The Address Hotels & Resorts Dubai. According to Genstar, the software company services 37,000 hotels in 150 countries.
In addition, it has a network of people around the world that work directly with hoteliers to implement TravelClick software, the companies said.
They added that TravelClick will grow further in Thoma Bravo's hands, as it competes in the $500 billion hospitality industry.
“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," said Genstar chairman Jean-Pierre L. Conte, referring to CEO Larry Kutscher of TravelClick.
Another TravelClick rival, NMTI Holdings Inc., was bought in December by the U.S. unit of Spanish travel information technology company Amadeus IT Holding SA for $500 million. The deal was part of Amadeus's strategy of diversifying into new business areas and significantly strengthened its presence in the hotel IT market, a key sector Amadeus had targeted for future growth, the Madrid-based company said.
Kirkland & Ellis LLP served as legal adviser to Thoma Bravo.
Howard S. Glazer, Byung W. Choi, Harry Rubin, Lucas Rachuba and Michael S. McFalls led the Ropes & Gray LLP team that provided legal counsel to Genstar and TravelClick.
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