Amadeus Acquires Newmarket

12/23/2013
Amadeus, technology provider for the global travel industry, has announced that it is to acquire Newmarket International, a leading provider of cloud-based group and event IT solutions to the hotel industry, for USD 500 million.
 
The addition of Newmarket, based in Portsmouth, New Hampshire, US will bring a strong management team and talented workforce to Amadeus that will significantly strengthen the Group’s expertise and experience in the hotel IT industry, a key target sector for future growth. 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.”
 
“The acquisition by Amadeus is great news for both our customers and employees,” said Jeff Hiscox, President and CEO of Newmarket. “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”.   
 
“Amadeus continues to develop and provide IT systems for the Hotel industry based-on our successful cloud-based platform in use in the Airline IT segment of the market.  We intend to leverage the Newmarket business and proven execution abilities to expand the Amadeus Hotel offering to hotels worldwide”, said Jeff Edwards, Head of Global Hotels Group at Amadeus. “The combination of Newmarket’s expertise and exceptional customer service, with Amadeus’ scale and global reach will enable us 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% of a full-service hotel’s revenues. It will be operated as a stand-alone business within Amadeus’ Global Hotel Group which will integrate many aspects of Amadeus’ robust products and services over time.   The combination of Amadeus and Newmarket is expected to result in revenue synergy opportunities in both Hotel IT and Distribution. 
 
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