Spanish firm buys Newmarket International for $500m
Amadeus, a Spain-based technology travel company, announced Wednesday that it plans to acquire Portsmouth-based Newmarket International for $500 million.
Amadeus says the addition of Newmarket will strengthen its expertise and experience in the hotel information technology industry and add established relationships with key customers. The company provides cloud-based IT services.
“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,” said Luis Maroto, president and CEO of Amadeus, in a news release.
Jeff Hiscox, president and CEO of Newmarket, said the acquisition by Amadeus is great news for both its customers and employees.
“We have built a profitable and successful business that is the undisputed leader in our market segment, and by joining Amadeus we have the ideal platform to take that success to the next level and extend our leadership in hotel IT solutions,” Hiscox said in a prepared statement.
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 to 40 percent of a full-service hotel’s revenues, according to the release. It will be operated as a stand-alone business within Amadeus’ Global Hotel Group. 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. Amadeus is based in Madrid.
Newmarket, which estimates its 2013 revenues will $110 million, expects to close the deal with Amadeus in the first quarter of 2014.