Fourth, the global SaaS provider of labor, payroll, inventory and procurement systems for the restaurant/bar, hotel, contract catering and leisure markets, has announced the acquisition of Adaco Inc., supplier of SaaS based purchasing and inventory control solutions to the hotel sector in the US and throughout the world.
With more than 400 customers in 54 countries and a 27 year history, Adaco has an excellent reputation in the hotel sector and will continue to operate from its Connecticut base in the U.S., supported by the Fourth team in London, England. The Adaco office will become the operating base for Fourth USA.
Fourth and Adaco have strong product offerings in their respective markets and clear development roadmaps, with increased benefits envisaged for all customers through tight collaboration and the sharing of technical expertise. With nearly 250 employees, the combined businesses will have access to more resources in development and customer support, across Europe and the US, as well as the financial support of ECI Partners, a leading private equity firm.
Ben Hood, Fourth CEO commented, “We are delighted with this acquisition as it fits well with our international ambitions. I am excited that Sunil will be joining our senior management team and feel this will be a great opportunity for all Adaco employees. Adaco has a fantastic reputation for innovative solutions for the hotel sector and the synergies are considerable. We both share a deep commitment to providing business process efficiency, excellent ROI, and significant improvements in gross profit for our customers.
“Fourth’s acquisition enables us to extend our global reach as part of a large, well-funded and ambitious organization,” Sunil Reddy, president of Adaco says. “I am looking forward to joining the Fourth Board in my on-going role as Adaco president and working closely with its management team - the culture and vision of Fourth and Adaco are very similar which is exciting.”
Stuart Layzell, Fourth CFO added, “We are excited about working together to build on our existing market position. The combined group will have sales in excess of £23m ($36m) with healthy margins and cashflows. The on-going financial support from HSBC and our shareholders is a great vote of confidence in our growth plans.”