Technology
Tuesday, June 18th, 2024 3:14 pm EDT
Key Points
- TravelPerk has acquired Chicago-based startup AmTrav to bolster its U.S. expansion, supported by $135 million in debt financing from Blackstone and Blue Owl, aiming to double U.S. revenues and make the U.S. its largest market by 2026.
- AmTrav will continue operating under its brand with its entire team intact, enhancing TravelPerk’s localization strategy in the U.S. by providing better rates and inventory options through deeper supplier relationships.
- TravelPerk plans to increase its U.S. workforce by 35% by the end of 2024, leveraging AI to improve efficiency and maintain a human-first approach, while both companies will capitalize on proprietary technology to drive business growth.
TravelPerk, a European corporate travel booking platform, has acquired the Chicago-based startup AmTrav as part of its strategic expansion into the U.S. market. AmTrav will continue operating under its brand, retaining its entire team. This acquisition is expected to double TravelPerk’s U.S. revenues, making the U.S. its largest revenue-generating region by 2026. To support this expansion, TravelPerk secured $135 million in debt financing from private equity firms Blackstone and Blue Owl.
TravelPerk’s CEO and co-founder, Avi Meir, emphasized that this acquisition would enhance their localization strategy in the U.S., providing better rates and inventory options through deeper supplier relationships. Currently, the U.K. is TravelPerk’s largest market, following its acquisition of Click Travel in 2021. With this new deal, TravelPerk plans to expand its U.S. workforce by 35% by the end of 2024, adding to its current global employee count of over 1,200. The company reported a 65% increase in U.S. revenues last year.
The U.S. corporate travel market was valued at $329 billion in 2023 by the Global Business Travel Association. TravelPerk will integrate AmTrav’s offices in Boston, Chicago, Los Angeles, and Miami into its U.S. operations. The financial details of the acquisition were not disclosed. AmTrav’s CEO, Jeff Klee, mentioned that merger discussions had been ongoing since 2021, with a key requirement being the continuation of AmTrav’s operations post-acquisition.
Klee highlighted that both companies, though fundamentally software-driven, recognize the crucial role of service in the travel industry. AmTrav’s employees will remain in their current roles, and Klee humorously noted that he and co-founder Craig Fichtelberg would now have a boss for the first time in 35 years. The acquisition aligns with TravelPerk’s broader strategy, supported by the $135 million financing, bringing its total funding for 2024 to $240 million.
TravelPerk had raised $104 million earlier in the year from investors including SoftBank Vision Fund 2, Blackstone, and Blue Owl. Blue Owl Capital’s managing director, Kurt Tenenbaum, expressed confidence in TravelPerk’s management team and their potential for long-term success. Founded in 1989, AmTrav provides localized digital travel management for small to mid-sized firms, leveraging its longstanding data exchange agreements with major airlines like American Airlines and Southwest.
TravelPerk and AmTrav aim to leverage proprietary technology and develop new AI capabilities to enhance their services. Meir believes AI will increase the need for in-person meetings, thus driving business travel. TravelPerk’s AI strategy focuses on making humans more efficient rather than replacing them, maintaining a human-first approach that automates backend tasks to free up time for interaction with colleagues, customers, and partners. TravelPerk serves clients such as Betterment, Adyen, Wise, and Red Bull, and its platform supports bookings across various international markets, including the U.S., Canada, the U.K., Germany, France, and several others. Existing investors in TravelPerk include SoftBank, General Catalyst, Kinnevik, Greyhound Capital, Felix Capital, Target Global, LocalGlobe, Spark Capital, and Heartcore.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/06/18/travelperk-acquires-us-rival-amtrav-bags-135-million-for-expansion.html
