Apax Partners-backed IBS Software will acquire US-based hotel and travel technology provider Above Property Services (APS) for $90 million (nearly Rs 748 crore).
The transaction will fuel IBS’ strategy to improve capabilities and offerings for the hospitality sector, it said in a statement.
The companies did not provide further details on the transaction.
The acquisition comes about eight months after Apax Partners invested about $450 million in IBS, picking up Blackstone’s significant minority stake, pegging the company’s valuation at around $1.5 billion. Blackstone had acquired a minority stake in IBS Software for approximately $170 million in late 2015 from rival PE major General Atlantic and other shareholders.
The deal allows IBS Software’s three offerings, CRS (central reservation system), PMS (property management system) and RMS (revenue management system) to be added to its booking engine and distribution platform.
“There is an unmet need in the hospitality industry to simplify how rooms and other services are sold. Too many businesses are being held back by legacy technology that prevents them from living up to their potential,” said Peter Krebs, head of travel & hospitality solutions at IBS Software.
APS, founded in 2012 by Aaron Shepherd, offers hotel software that allows operators to scale without limitations of legacy.
With APS’ tech stack, IBS would be able to offer a unified platform that allows its clients to manage the entire customer journey from booking to fulfillment for the global hotel chain, resort and gaming markets, significantly increasing its addressable market in hospitality.
Shepherd, along with APS’ team, will join IBS Software, according to the statement.
Steffan Berelowitz, head of the hospitality business at IBS Software, will lead the development and expansion of the hospitality business, working closely with Shepherd.
“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,” said VK Mathews, founder and executive chairman of IBS Software.
