Fourth, a premier provider of completely integrated cloud-based solutions for the hospitality industry, has successfully acquired Adaco Inc. a major supplier of SaaS (News - Alert) based purchasing and inventory control solutions to the hotel sector in the US and other countries.
With this acquisition, Adaco will continue to operate from its Connecticut base in the US and will be supported by the Fourth team in London, England.
Officials also confirmed that the Adaco office will become the operating base for Fourth USA.
In a statement, Sunil Reddy, president of Adaco said “Fourth’s acquisition enables us to extend our global reach as part of a large, well-funded and ambitious organization. I am looking forward to joining the Fourth Board in my on-going role as Adaco President and working closely with its management team - the culture and vision of Fourth and Adaco are very similar which is exciting.”
Both Fourth and Adaco have strong reputations in their respective markets. With approximately 250 employees, the combined businesses will now have access to more resources in development and customer support, across Europe and the US. They will also have access to the financial support of ECI Partners, a premier private equity firm.
Fourth, with this announcement, will be able to increase its international footprint, with a major presence in over 50 countries including North and South America, Europe and the Middle East and Russia. The combined group will have sales in excess of $36m with healthy margins and cash flows.
Ben Hood, Fourth CEO commented, “We are delighted with this acquisition as it fits well with our international ambitions. I am excited that Sunil will be joining our senior management team and feel this will be a great opportunity for all Adaco employees. Adaco has a fantastic reputation for innovative solutions for the hotel sector and the synergies are considerable. We both share a deep commitment to providing business process efficiency, excellent ROI, and significant improvements in gross profit for our customers.”
In related news, ECI Partners, a mid-cap private equity group in UK has taken a majority holding in XLN Telecom, a UK provider of telecoms services for small business.
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