Kerala IT major IBS Software acquires US firm for Rs748 crore

Thiruvananthapuram-based IT major IBS Software has acquired the US-headquartered hotel and travel technology provider Above Property Services (APS)for $90 million (Rs748 crore).

The company, a leading SaaS (software as a service) solution provider to the travel industry globally, claims that the deal will further solidify its position in the hospitality market and strengthen the brand.

IBS said in a statement that the deal will enable it to provide a unified platform in the hospitality industry for seamlessly managing the entire customer journey from booking to fulfillment for the global hotel chain, resort, and gaming markets. The move will significantly expand the company's offering with the addition of CRS (Central Reservation System), PMS (Property Management System), and RMS (Revenue Management System) solutions to its already established booking engine and distribution platform used by over 36,000 hotels globally, including many of the world's largest and best-known hotels and resorts.

APS was founded in 2012 by Aaron Shepherd, an industry pioneer who developed a number of the world’s leading hospitality PMS and CRS solutions. The company was established to completely reinvent hotel software from the ground up, offering a unified platform optimized for the hotel enterprise sector, the release said.

Aaron Shepherd, Founder and CEO of APS, added: "IBS Software and APS both recognize the crucial need to accelerate next-level transformation in travel and hospitality to create unparalleled value for its clients. It is this shared vision that has inspired our collaboration.’’

V K Mathews, Founder and Executive Chairman of IBS Software, said: “APS is a true disruptor in the travel tech industry. Led by Aaron Shepherd, a visionary in the sector, the team has executed flawlessly its vision to streamline complex processes in the hospitality businesses to deliver integrated, end-to-end services that differentiate and improve the customer experience. This acquisition will significantly enhance IBS Software’s offerings in hospitality, expanding our market reach and winning market share in multiple segments, including medium to large hotel chains as well as luxury, resort, and gaming customers.”

According to a recent h2c Global Hospitality Distribution Study, the CRS is the leading distribution system for 89% of large hotel chains and 60% of medium-sized hotel chains, with 20% of hotel organizations planning to replace their CRS within three years. Through this transaction, IBS Software will substantially extend its total addressable market and capitalize on the growing demand,