Spanish technology company Amadeus, the world's biggest processor of travel transactions, said it will buy Newmarket International for $500 million to boost its position in the hotel IT sector.
Newmarket, based in Portsmouth, N.H., offers cloud-based IT solutions for hotels’ groups and events businesses. With 430 employees globally, the entire team and management are slated to join Amadeus when the transaction closes in the first quarter of 2014.
"This important and strategic acquisition will strengthen Amadeus' position in the hotel IT sector, bringing important expertise and key customer relationships to the company that will accelerate our move into this key market," said Luis Maroto, president and ceo of Amadeus. "With many hotel chains at a crossroads in their IT strategy, and the provider landscape fragmented, Amadeus is committed to playing a key role in partnering with the hotel industry to address its challenges and this transaction will greatly accelerate that objective."
"The acquisition by Amadeus is great news for both our customers and employees," said Jeff Hiscox, president and ceo of Newmarket, in a release. "We have built a profitable and successful business that is the undisputed leader in our market segment and by joining Amadeus we have the ideal platform to take that success to the next level and extend our leadership in hotel IT solutions."
Newmarket’s products and services offerings are complementary to Amadeus’ IT product set which is focused on delivering cloud-based enterprise solutions in the area of central reservations systems, property management systems, revenue management systems and e-Commerce platform solutions, reports the Vancouver Sun.
Newmarket, which serves around 22,000 unique properties in 154 countries, operates in the group and event management segment of the hotel industry, which is estimated to account for 30 to 40 percent of a full-service hotel's revenues. It will be operated as a stand-alone business within Amadeus' Global Hotel Group which will integrate many aspects of Amadeus' robust products and services over time. The combination of Amadeus and Newmarket is expected to result in revenue synergy opportunities in both hotel IT and distribution.