Amadeus to Acquire Newmarket International for USD 500 Million
Amadeus announced its intent to acquire Newmarket International, a provider of cloud-based IT solutions for hotels specializing in groups and events, for USD 500 million. The deal is expected to close in the first quarter of 2014 and enhance Amadeus' presence in the hotel IT sector.
Travel technology provider Amadeus IT Group announced on December 18, 2013, its agreement to acquire Newmarket International for USD 500 million. This acquisition is intended to significantly strengthen Amadeus' position within the hotel IT market.
Newmarket International, based in Portsmouth, New Hampshire, offers cloud-based solutions for hotel group and event management. The company serves approximately 22,000 properties across 154 countries. Newmarket reported estimated 2013 revenues of $110 million with an EBITDA margin of 31%, and Amadeus anticipates the acquisition will be earnings accretive from day one.
Amadeus, primarily known for its IT systems for the airline industry, is strategically diversifying into new business areas, with hotel IT identified as a key growth sector. The addition of Newmarket is expected to bring deep industry expertise, customer relationships, and a complementary product set to Amadeus. Approximately 430 Newmarket employees will join Amadeus as part of the Global Hotel Group.
The transaction is projected to yield revenue synergy opportunities in both hotel IT and distribution. Amadeus CEO Luis Maroto stated that the acquisition will accelerate the company's established strategy to partner with the hotel industry and address its IT challenges. The hotel IT landscape is currently fragmented, presenting an opportunity for Amadeus.
The deal is expected to be finalized in the first quarter of 2014.