Consolidation Contracts Hospitality Tech Sector
If there is any sign that the hospitality technology market is healthy, it is the continued rate of acquisitions and mergers across the industry. Recently, Netifice Communications and MegaPath Networks, both providers of virtual private network (VPN) solutions and other managed IP services to businesses worldwide, announced a proposed merger. On the hotel group sales and catering side, Newmarket International acquired its long-time rival Daylight Software.
The Netifice acquisition of MegaPath for an undisclosed amount in stock and cash includes $35 million in additional funding from existing investors of both companies. "This merger brings together two highly competitive managed IP service companies with a shared strategic vision and a passion to serve our customers," explains Craig Young, chairman and chief executive officer of Netifice Communications.
According to Sean O'Neill, president and CEO of Newmarket International, "This acquisition will leverage the strengths of both companies and accelerate the leadership position Newmarket International enjoys around the world." No details of the Daylight Software acquisition by Newmarket were available by press time.
"We have enjoyed a healthy competition with Newmarket," adds Timothy Mathews, Daylight president and CEO. This acquisition will result in a win-win for both companies, for their customers, and for the industry overall."