TravelClick acquired by private equity firm Thoma Bravo
Genstar Capital Management recently announced its plans to sell its portfolio company TravelClick to Thoma Bravo for $930 million. The company was put up for sale in January of this year. The deal is expected to close sometime during the second quarter of 2014.
New York City-based TravelClick sells a complete suite of hotel management software used in over 37,000 establishments worldwide. Its business intelligence and marketing tools help properties drive traffic to their websites and grow their businesses. In 2007, the firm was acquired by Genstar and Bain Capital. Since the purchase the tech company has more than doubled its revenue and increased its market share.
TravelClick's most high profile clients include Hilton Hotel & Resorts, Loews Hotel & Resorts and the Bryant Park Hotel.
In a press release, Travel Click CEO Larry Kutscher said that his company's previous partnership with Genstar and Bain allowed it to grow significantly.
"By updating our technology, […] implementing a new reservation booking engine and nearly doubling our sales force, we were able to grow distribution channels and new products," Kutscher said. "We have become a key partner to our global hotel clients as they rely on TravelClick's rich industry data, technology and marketing solutions to continue to enhance their competitive position and increase bookings and revenue."
As a result of the technology acquisition, TravelClick will have more freedom to pursue its business goal of creating end-end cloud software solutions for the hospitality industry.
Thoma Bravo is a private equity firm with offices in Chicago and San Francisco. According to TechCrunch it's not the only investor pursuing travel-related startups as a part of its acquisition strategy. The website reports that since 2009 investors have either bought out or purchased a large stake in these companies in over 40 countries.