Travel Tech M&A Surge: Winners, Losers, And Strategic Moves

Recent trends indicate a significant uptick in merger and acquisition (M&A) activity within the travel technology sector. Recent headlines and supporting data highlight this growing trend.

Numerous companies are engaging in a travel technology consolidation, with smaller firms and startups finding larger homes through these deals. But what factors are driving this heightened activity? Are valuations becoming more realistic, and what criteria are guiding acquiring companies and investors?

Juniper Group, a subsidiary of Vela Software—which itself is one of six divisions under Constellation Software—has been notably active in recent months, acquiring companies such as Lleego and Vervotech. In addition, Vela Software expanded its portfolio with the acquisition of travel technology firm Peakwork in April 2023.

Jaime Sastre, CEO of Constellation Software, characterized these acquisitions as integral to their growth strategy. He emphasized that the company seeks to acquire strategic assets with potential synergies to complement its existing portfolio. Sastre also highlighted Constellation’s philosophy of “buy and hold forever,” noting that the firm pursues acquisitions not solely for synergies but also as part of its broader capital allocation strategy.

Sastre further explained that each acquired company retains its own CEO. Constellation’s approach is to manage software companies through independent leadership rather than integrating them into a larger organization.

At the recent Phocuswright Europe 2024 event, Sastre was joined by Rita Lei, a partner at MCF Corporate Finance. Lei’s firm advised Sweden’s Visit Group during PSG Equity’s acquisition of a majority stake in the company last year.