ALPHARETTA, Ga. & TORONTO - Agilysys , Inc. (NASDAQ: NASDAQ:AGYS), a provider of hospitality software solutions, has acquired Book4Time, Inc., a leader in spa management software. The all-cash transaction, which closed for approximately $150 million USD, aims to enhance Agilysys's global presence and create additional subscription revenue opportunities.
Book4Time, recognized for serving more Forbes 5-Star-rated spas than any other solution, is the 2024 HotelTechAward Winner for Best Spa Management Software. The company's platform is used by spas, hotels, resorts, casinos, and private clubs in over 100 countries, improving operational efficiency and revenue through features like appointment booking and contactless guest intake.
Roger Sholanki, CEO of Book4Time, expressed enthusiasm for joining Agilysys, highlighting the combined technology innovation strengths and the potential to deliver enhanced value to clients. Ramesh Srinivasan, President and CEO of Agilysys, echoed this sentiment, noting that while both companies serve industry-leading customers like Marriott International (NASDAQ:MAR) and Hilton, there is minimal overlap in their customer bases, presenting opportunities to introduce additional software solutions to a broader range of clients.
The acquisition is expected to accelerate hospitality technology innovation by leveraging the product strengths of both companies. Agilysys plans to discuss the financial implications of the acquisition and its impact on the fiscal year 2025 during its second-quarter earnings call in October 2024.
Agilysys specializes in software solutions that maximize Return on Experience for hospitality organizations, serving a diverse customer base that includes hotels, resorts, casinos, and other hospitality-related entities. Book4Time, based in Ontario, Canada, is known for its cloud-based spa management software and has a reputation for high uptime and multi-language support.
The information for this article is based on a press release statement.
In other recent news, Agilysys Inc. experienced significant changes and developments. The company announced the appointment of Joe Youssef as Senior Vice President, Sales, Americas and EMEA, and Chief Commercial Officer, replacing the outgoing Don DeMarinis. Youssef, a former executive at Amadeus, is expected to contribute to Agilysys' growth and innovation in hospitality technology.
In fiscal updates, Agilysys reported record-breaking Q1 fiscal 2025 revenue of $63.5 million, a 13% year-over-year increase. The company's Property Management System (PMS) and related modules, particularly in the Americas hotels and resorts sector, significantly contributed to this growth. Moreover, recurring revenue saw an increase, reaching $38 million, with subscription revenue growing by 32%.
Despite lower-than-expected one-time product revenue, Agilysys remains optimistic about its full-year guidance. This optimism is backed by a promising outlook on its Point of Sale (POS) system sales and a robust sales pipeline. These recent developments indicate a dynamic period for Agilysys, with significant shifts in leadership and continued financial growth.
InvestingPro Insights
Agilysys, Inc.'s strategic acquisition of Book4Time, Inc. reflects its continued commitment to expanding its software solutions within the hospitality industry. As the market responds to this development, InvestingPro data provides valuable insights into Agilysys's financial health and market performance. With a robust market capitalization of $3 billion, the company stands as a significant player in the technology sector.
InvestingPro Tips highlight that Agilysys holds more cash than debt on its balance sheet, which could provide financial flexibility to support the integration of Book4Time's operations and pursue further growth initiatives. Additionally, analysts have revised their earnings upwards for the upcoming period, signaling confidence in the company's potential post-acquisition performance.
Key InvestingPro Data metrics reveal that Agilysys is trading at a high Price / Book multiple of 11.78, indicating a strong market valuation relative to its book value. This is further underscored by the company's revenue growth of 18.54% over the last twelve months as of Q1 2025, showcasing its ability to expand its top-line. Moreover, the company's EBITDA growth of 67.13% during the same period reflects a robust increase in profitability before accounting for certain expenses.
For readers interested in a deeper dive into Agilysys's financials and market performance, InvestingPro provides a comprehensive suite of additional tips. In fact, there are 15 more InvestingPro Tips available, which can offer further insights into Agilysys's valuation, profitability, and market trends. These tips can be accessed at https://www.investing.com/pro/AGYS, providing investors with a more nuanced understanding of the company's financial landscape.
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