Amadeus reports it will acquire Newmarket International, a provider of cloud-based group and event IT solutions to the hotel industry, for $500 million. The addition of Newmarket will significantly strengthen the Amadeus Group’s expertise and experience in the hotel IT industry, a key target sector for future growth, Amadeus said. Newmarket also adds established relationships with key customers in the hotel segment.
“This important and strategic acquisition will strengthen Amadeus’ position in the hotel IT sector, bringing important expertise and key customer relationships to the company that will accelerate our move into this key market,” said Luis Maroto, president and CEO of Amadeus.
“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 greatly accelerate that objective,” Maroto said.
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.
It will be operated as a stand-alone business within Amadeus’ Global Hotel Group, Amadeus said.
As a result of the transaction approximately 430 employees globally, including Newmarket’s entire management team, will become part of the Amadeus Global Hotel Group, maintaining Newmarket’s headquarters location in Portsmouth, New Hampshire.
Newmarket has estimated 2013 revenues of $110 million. The transaction is expected to be earnings accretive to Amadeus on day one.
Amadeus and Newmarket said they expect to complete closing in the first quarter of 2014.