IBS Software, a SaaS solutions provider to the travel industry, has reached an agreement to acquire hotel and travel technology provider Above Property Services. The $90 million transaction aims to solidify IBS Software's position in the hospitality market and strengthen the brand, driving its expansion in the hospitality industry.
The acquisition will let IBS Software provide the only unified platform in the hospitality industry for managing the entire customer journey from booking to fulfillment for the global hotel chain, resort and gaming markets. The move will significantly expand the company's offering with the addition of central-reservation system, property-management system and revenue-management system solutions. With this acquisition, IBS Software adds call center and demand-side (stored and third-party inventory) solutions to its already established booking engine and distribution platform used by over 36,000 hotels worldwide.
"IBS Software and APS both recognize the crucial need to accelerate next-level transformation in travel and hospitality to create unparalleled value for its clients. It is this shared vision that has inspired our collaboration," Aaron Shepherd, founder and CEO of APS, said in a statement. "APS has successfully developed the only unified cloud-native microservices platform that frees operators from the limitations of legacy, monolithic technologies, providing flexibility, speed, and the ability to scale infinitely. Today's news gives APS customers the stability and resources of a large, multi-national travel leader and will give IBS Software clients and partners access to the most modern and comprehensive modular solution in the industry, ushering in a new era of growth and propelling them to new heights. I, personally, am delighted to be joining IBS Software and very excited to be part of this evolution as an industry leader, with the acquisition of APS."
"There is an unmet need in the hospitality industry to simplify how rooms and other services are sold," said Peter Krebs, head of travel and hospitality solutions at IBS Software. "Too many businesses are being held back by legacy technology that prevents them from living up to their potential. It's vital they have the tools they need to be effective in a rapidly changing marketplace. We were blown away by the capabilities of the ground-breaking APS platform and the value it delivers to travel businesses, providing them with the power to simplify their tech stack to instantly create new services and offers. We are very excited to bring Aaron Shepherd and his entire team onboard, and with this IBS Software and APS will be uniquely placed to offer the only unified platform for the global hospitality chain and enterprise market. We couldn't be more excited about what we can achieve together."
"APS is a true disruptor in the travel tech industry. Led by Aaron Shepherd, a visionary in the sector, the team has executed flawlessly on its vision to streamline complex processes in the hospitality businesses to deliver integrated, end-to-end services that differentiate and improve the customer experience," said V K Mathews, founder and executive chairman of IBS Software. "This acquisition will significantly enhance IBS Software's offerings in hospitality, expanding our market reach and win market share in multiple segments, including medium to large hotel chains as well as luxury, resort and gaming customers."
According to a recent h2c Global Hospitality Distribution Study, the CRS is the leading distribution system for 89 percent of large hotel chains and 60 percent of medium-sized hotel chains, with 20 percent of hotel organizations planning to replace their CRS within three years. Through this transaction, IBS Software will substantially extend its total addressable market and capitalize on the growing demand.
Steffan Berelowitz, head of the hospitality business at IBS Software, will lead the development and expansion of the hospitality business, working closely with Aaron Shepherd.
The transaction is subject to customary closing conditions.