Amadeus to acquire hotel industry IT vendor Newmarket for $500 million

Amadeus, an IT vendor for the travel industry, will acquire Newmarket International, a provider of cloud-based IT solutions to the hotel industry, for $500 million.

Besides getting Newmarket’ clients in the hotel industry, the acquisition of Newmarket will assist Amadeus to significantly strengthen its experience in the hotel IT industry, a key target sector for future growth.

Luis Maroto, president and CEO of Amadeus, said: “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 accelerate that objective.”

Luis Maroto President CEO Amadeus

Amadeus develops and provides IT systems for the Hotel industry based-on cloud-based platform in use in the airline IT segment of the market. The combination of Newmarket’s expertise with Amadeus’ global reach will enable to deliver a comprehensive set of integrated high value products and services to the hotel industry.

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 30-40 percent of a full-service hotel’s revenues.

Newmarket, which has an estimated 2013 revenues of $110 million and EBITDA margin of 31 percent, will be operated as a stand-alone business within Amadeus’ Global Hotel Group. Around 430 employees, including Newmarket’s entire management team, will become part of the Amadeus Global Hotel Group, maintaining Newmarket’s headquarters location in Portsmouth, New Hampshire.

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