Travelsoft, a France-based company focusing on providing tech solutions for travel agents and tour operators, recently announced the acquisition of three tech companies. The companies acquired are Spain-based TravelgateX, UK-based Atcore Technology, and Romania-based Travel Connection Technology, each offering business-to-business services related to the travel industry. Despite the acquisitions, each company will maintain autonomy, including keeping their brand names, leadership teams, and tech platforms.
The acquisition has significantly expanded Travelsoft’s capabilities, with the company’s employee base nearly tripling to 600. The platforms now facilitate bookings worth €35 billion, up from €5 billion before the deal. In terms of recurring revenues, Travelsoft now totals €100 million annually, a significant increase from €43 million previously. The company has also seen growth in its client base, now serving 400 major clients and 1,000 travel suppliers.
This acquisition spree marks the sixth acquisition for Travelsoft since 2022, bringing the total number of companies under the group’s umbrella to seven. Previous acquisitions include Eventiz Group, Orchestra, Traffics, and Travel Compositor. Private investment firm Capza invested in Travelsoft, enabling the acquisition spree. Industry experts predict that the travel industry is ripe for consolidation, evidenced by multiple deal announcements in recent weeks. Companies like Mews, a hotel tech startup, have also been active in making acquisitions.
Investment bank AGC Partners published an analysis indicating that merger and acquisition activity in the tech industry is on the rise. The firm believes that the funding environment has improved, and tech private equity firms have significant capital to deploy, with about $300 billion available for investment. AGC Partners predicts that more deals are on the horizon, with firms like Mews and Travelsoft positioning themselves for growth through strategic acquisitions. Overall, the industry is seeing increased activity in mergers and acquisitions, indicating a trend towards consolidation.
The acquisition of the three tech companies by Travelsoft demonstrates the company’s commitment to expanding its tech capabilities and market share in the travel industry. By acquiring companies that offer complementary services, Travelsoft aims to strengthen its position in the market and provide enhanced solutions for its clients. The autonomy given to the acquired companies allows them to continue operating independently while benefiting from the resources and expertise of Travelsoft, leading to overall growth and innovation in the industry.
With the support of private investment firm Capza and a strong financial position, Travelsoft is well-positioned to continue its acquisition spree and further expand its portfolio of companies. The industry trend towards consolidation and the availability of significant capital for investment indicate that more deals are likely to come. As companies like Mews and Travelsoft focus on growth through acquisitions, the travel tech industry is expected to see further consolidation and increased collaboration among companies to drive innovation and efficiency in the market.
