In a strategic move to bolster its U.S. presence, SoftBank-backed global business travel management platform, TravelPerk, has acquired American industry leader AmTrav.
What Happened: According to a press release by TravelPerk on Tuesday, the Barcelona-based firm has bought Chicago-based AmTrav, a forerunner in the business travel industry. This acquisition is a key part of TravelPerk’s plan to strengthen its U.S. expansion.
Both firms aim to utilize their proprietary technology, artificial intelligence capabilities, and increased resources to further enter the U.S. market, which recorded a business travel expenditure of $329 billion in 2023, as per the Global Business Travel Association.
In addition, TravelPerk has secured a new credit facility of up to $135 million led by Blackstone Credit & Insurance and Blue Owl Credit. This follows the company’s recent $104 million Series D1 Extension funding round in January 2024, providing a substantial capital base for both organic and inorganic growth.
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The acquisition is projected to double TravelPerk’s US revenue, following a 65% year-over-year growth in 2023. The company’s U.S.-based workforce and footprint will now include offices in Boston, Chicago, Los Angeles, and Miami. AmTrav will continue to operate under its existing brand, with the entire team remaining with the business.
Why It Matters: The acquisition and funding come at a time when businesses are increasingly turning to AI-driven solutions, with 50% of organizations planning to incorporate AI into their operations this year.
This acquisition comes at a time when the travel industry is witnessing a resurgence. Booking.com reported a 16.86% increase in sales from the same period last year, indicating a growth in travel demand. Similarly, Airbnb also reported an 18% year-over-year increase in its first-quarter revenue, driven by continued strength in travel demand.
Image Credit: Dall-E 3
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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