Blackstone to sell interest in travel tech’s IBS Software

Private equity giant Blackstone has reached an agreement to sell its minority stake in travel tech company IBS Software to Apax Partners for approximately $450 million.

Blackstone invested $170 million for an undisclosed stake in IBS Software in 2015.

The agreement remains subject to closing conditions and is expected to be finalized at the end of the second quarter.

Following the transaction, Apax will work closely with IBS Software’s founding and executive chairman, V K Mathews, who will remain the majority shareholder.

“We’re excited to partner with Apax as we enter a new phase in our mission to transform how travel companies operate in a digital world,” Mathews said. “This investment is an endorsement of our strategy and our commitment and contribution to the industry, and we have a shared vision with Apax for the future of the business.”

Founded in 1997, IBS Software provides software-as-a-service products for airlines, airports, hotels and cruise companies, among others.

Jason Wright, a partner at Apax, said the equity advisory firm had been monitoring the travel software sector before moving on the deal.

“IBS Software stood out to us as uniquely positioned in the industry, offering a next-gen software suite that we believe is truly unrivaled,” he said. “Over the last two decades, IBS Software has invested in products, innovation and culture, while continuing to scale the business. We believe there is tremendous growth potential ahead and look forward to leveraging our software experience to help IBS Software become a world leader in travel and logistics software.”

Anand Krishnan, the CEO at IBS Software, said Apax’s deep experience in partnering with SaaS providers will make it a strategic partner for the company’s new phase of growth.

“As the travel industry rapidly embraces digitalization, we have a vital role to play in helping our customers accelerate revenues, drive efficiency and create differentiated customer experiences,” Krishnan said.