Amadeus to Buy TravelClick for $1.52 billion – Private Equity Makes a Killing, Again

Hospitality tech company TravelClick has proved to be an amazing investment for its past two owners – will incoming owner Amadeus, which has just agreed to pay private equity firm Thoma Bravo USD$1.52 billion for the business, be able to say the same?

Here’s a quick timeline. Thoma Bravo bought TravelClick from Genstar, another private equity company, for USD930m in 2014, making USD600m in just four years.

Genstar bought TravelClick in 2007 for  USD275m – which at the time was regarded as a high price to pay – yet Genstar ended up trebling its money in seven years.

Of course, the metrics are completely different for Amadeus, a travel technology giant with airline roots that wants to increase its hospitality business.

Its first move in this direction was the acquisition of hospitality IT company Newmarket International in late 2013 for USD500m.

Now TravelClick, which has more than 25,000 customers across 176 countries.

“The addition of TravelClick solutions to the Amadeus portfolio will create a hospitality leader providing a broad range of innovative technology to hotels and chains of all sizes across the globe,” says Amadeus.

The deal is due to close by June 30.

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