AT&T (News 
- Alert) has entered into a definitive agreement to acquire Superclick (News - Alert), a small but growing Canadian Internet access management company that specializes in the hospitality space. The all-cash transaction is valued at around $15 million.
The Montreal-based outfit designs, deploys and manages IP networks for high-end destination resorts like the Fairmont Hotels and Resorts, Four Seasons Hotels and Resorts, Intercontinental Hotel Group and Marriott International. The company has a presence in Canada, North America, the Middle East and Asia, and also does business in the healthcare and MDU markets.
"We are confident that this transaction will allow our business to continue to flourish and that our technology will see wide adoption across many applications," Todd Pitcher, Chairman of Superclick, noted in a statement.
Superclick says that it provides Web access management systems to around 550 hotels and a total of about 125,000 rooms. The 10-year-old company isn't a behemoth in the industry, but it is profitable. The company reported third quarter net revenues of $2,994,465, up more than 40 percent of the previous year's Q3 numbers.
Meanwhile, gross profit for the three months ending on July 31 increased 66.3 percent to $1,623,865. Considering Superclick's high margins, its consistent growth pattern and global presence, $15 million sounds like a pretty good deal for AT&T.
Co-founder Sandro Natale told ITWorldCanada.com that acquisition talks between the two parties began nearly a year ago when AT&T delivered its first offer, which was rejected by the Superclick's M&A committee.
The conversation went "back and forth," Natale told the website, adding that things really started to heat up after competing companies began to show interest.
The deal is expected to close in the fourth quarter, pending the approval of Superclick shareholders.
For more insight on the deal, check out TMC (News - Alert) CEO Rich Tehrani's blog, which explains why AT&T felt inclined to purchase Superclick.
Beecher Tuttle is a TMCnet contributor. He has extensive experience writing and editing for print publications and online news websites. He has specialized in a variety of industries, including health care technology, politics and education. To read more of his articles, please visit his columnist page.
Edited by Rich Steeves
