Travel transportation and tech company IBS Software on Tuesday said it has reached an agreement to acquire hotel and travel technology firm Above Property Services (APS) for USD 90 million.
The APS deal will further solidify its position in the hospitality market and strengthen the brand, to underpin an ambitious expansion of its reach in the hospitality industry, IBS software said.
The strategic acquisition will enable IBS Software to provide the only unified platform in the hospitality industry for seamlessly managing the entire customer journey from booking to fulfillment for the global hotel chain, resort, and gaming markets, it said.
Founded in 2012 by Aaron Shepherd, the company offers a unified platform optimized for the hotel enterprise sector.
The USD 90-million transaction is subject to customary closing conditions, the company stated.
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. It's vital they have the tools they need to be effective in a rapidly changing marketplace, said Peter Krebs, Head of Travel and Hospitality Solutions at IBS Software.
With this acquisition IBS Software will add Call Center and Demand-side (stored and third-party inventory) solutions to its already established booking engine and distribution platform used by over 36,000 hotels worldwide, including many of the world's largest and best-known hotels and resorts.
"IBS Software and APS both recognize the crucial need to accelerate next-level transformation in travel and hospitality to create unparalleled value for its clients. It is this shared vision that has inspired our collaboration," said Shepherd founder and CEO of APS.
APS has developed the only unified cloud-native microservices platform that frees operators from the limitations of legacy, monolithic technologies, providing flexibility, speed, and the ability to scale infinitely, the company said.
"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 V K Mathews, Founder and Executive Chairman of IBS Software.