Travelsoft will generate over €35m annually and employ 200 technology professionals worldwide.
Software-as-a-Service (SaaS) group Travelsoft has announced the acquisition of B2B booking engine provider to travel companies, Travel Compositor, as part of the group’s strategy to become the world’s leading travel SaaS.
Founded in 2014 and headquartered in Spain, Travel Compositor employs 90 staff and operates a SaaS model. The company provides omni-channel travel management and booking systems, allowing tourism industry actors and retailers to sell their own and third-party travel services on a global scale. Travel Compositor also acts as a travel organizer for its B2B customers.
It does this by automating production and booking, handling data for marketing purposes, and focusing on amplifying conversion rates.
In terms of finance, it generates €1 billion in bookings and €11.5 million in revenues annually. The company has established itself in Southern Europe, and has a growing presence in emerging markets such as Latin America and parts of Asia.
This makes Travel Compositor the third company of Travelsoft group. Founded in Paris in 2000, Travelsoft specializes in software to sell travel packages by solving technological issues such as automating production and booking on one hand, efficiently handling data for marketing purposes and increasing conversion rates on the other. Travelsoft operates in 40 countries with various platforms adapted to the specific needs of each local market. The company leverages synergies between its different platforms, particularly in terms of global connectivity to airlines and hotels.
What does this acquisition add to Travelsoft’s portfolio?
With the inclusion of Travel Compositor, the group will now transact bookings in the order of €5 billion annually through over 300 tour operators connected to 600 suppliers in over 40 countries, mainly in Europe and the Americas.
Employing over 200 travel technology experts globally, Travelsoft will generate revenues of over €35 million (including annual recurring revenues (ARR) of €32 million) and will have an R&D investment capacity of over €5 million per year.
This form of rapid expansion has been a strategy of Travelsoft’s in the last couple of years.
In 2022, the company acquired Germany-headquartered Traffics, which was founded in 1999 and offers customer-oriented development of consulting, search and booking systems for more than 6,000 travel agencies as well as travel portals, airlines, hotels and travel suppliers – and the company has more than €1.5 billion euros in brokered travel sales per year.
Travelsoft is also the holding company of French-headquartered Orchestra, which was founded in 2000 and allows travel professionals to produce, administer, distribute and manage leisure offers – including packages, hotel nights, airline tickets, dynamic packages and ‘à la carte’ – on all distribution channels with €2.5 billion of travel sales per year through its platform.
However, like the previous acquisitions, Travelsoft maintains that it wants its subsidiaries to act as independent entities.
Each of the Travelsoft Group’s companies – Travel Compositor, Traffics and Orchestra – will maintain strong autonomy, including keeping their names and brands, and benefits from implementing inter-company synergies that make the most sense in their respective products and markets.
Travelsoft isn’t showing signs of slowing down on its acquisition roll, either.
Christian Sabbagh (Founder and CEO of Travelsoft) said, “The need for booking platforms is growing and we see many opportunities for consolidation, so watch out for more acquisitions as we build the world’s leading travel SaaS.”
As a result of the most recent acquisition:
- Christian Sabbagh, founder & President of Travelsoft, remains the majority shareholder of Travelsoft, alongside the two founders of Travel Compositor (Manuel Aragones and Vicente Rossello), as well as the two founders of Traffics (Salim Sahi and Jens Muskewitz).
- Shares in startups MOGU and Top Group Express owned by Travel Compositor will also join Travelsoft.
- The investors who participated in Travel Compositor’s only fundraising round in 2016 – including Caixa, Capital Risk, Inspirit (Didac Lee), Hotusa Ventures, and Venture Cap II – will exit at 100%, multiplying their investment by 12 to 15.
