Genstar Capital Announces Acquisition of TravelCLICK

SAN FRANCISCO,—Genstar Capital, LLC, a middle market private equity firm that focuses on investments in selected segments of life sciences, healthcare services, industrial technology, and software and software services, today announced that it has acquired TravelCLICK, a leading global provider of interactive distribution solutions and marketing services to independent and chain hotels worldwide.

TravelCLICK’s interactive distribution solutions and marketing services help independent and chain hotels maximize profitability by providing insights into their competitive position, as well as enabling them to increase room bookings and revenue per guest. TravelCLICK also helps optimize hotel room inventory allocation and distribution across multiple channels including the Internet, Global Distribution Systems (GDSs), Online Travel Agencies (OTAs), and direct channels such as hotel websites.

“Hotels are becoming increasingly sophisticated in their use of technology to market themselves over electronic channels-directly to Internet consumers as well as to travel agents- which streamlines operations and increases hotel margins. At the same time, travelers are migrating towards direct online transactions with hotels as online business reaches 50% of travel bookings by the end of 2007,” said Mark Hanson, a Managing Director at Genstar. “TravelCLICK is uniquely positioned to take advantage of these industry dynamics. We believe there are significant opportunities to capitalize on the company’s strong brand reputation to expand current solutions, as well as deliver additional services.”

Earlier this year, Genstar expanded its investments in the software & software services sector by acquiring ConvergeOne, one of the largest independent providers of business communications solutions in the U.S. TravelCLICK represents Genstar’s second investment this year in this category.

Genstar is acquiring TravelCLICK from Bain Capital and co-founders Richard Gray, Chairman of TravelCLICK, and Ray Cohen. Bain Capital Ventures is participating in this transaction through a new investment alongside of Genstar and will own a minority equity position, as will some members of the senior management team.

“TravelCLICK has experienced tremendous growth over the past few years. As the global market for our products and services continues to expand, Genstar’s experience and knowledge will support our growth into its next stage of development. Our aspiration is to be indispensable to our customers-their most essential resource for increasing direct-to-hotel bookings and achieving sustainable market leadership,” said Robert Post, President and Chief Executive Officer of TravelCLICK.

A few of TravelCLICK’s recognized clients include the Ritz London, Accor Hospitality, The Palms South Beach, Banyan Tree Hotels, Kimpton Hotel & Restaurant Group, Harrah’s, The Kahala Resort, La Quinta Inns and Suites, Loews Hotels and Trump Entertainment Resorts.

About Genstar Capital, LLC

Based in San Francisco, Genstar Capital (http://www.gencap.com) is a private equity investment firm that makes leveraged investments in quality middle- market companies. Genstar Capital works in partnership with management to transform its portfolio companies into industry-leading businesses. With more than $3 billion of committed capital under management and significant experience investing in businesses, Genstar focuses on selected segments of life sciences, healthcare services, industrial technology, and software and software services.

About TravelCLICK Inc.

TravelCLICK (http://www.travelclick.net) is the leading provider of emarketing solutions that help hotels sell rooms smarter and drive long-term profitability. TravelCLICK helps hotels maximize asset ROI by combining innovative market analysis and proven industry best practices with advanced technology to develop and implement high-return strategies. The company offers a full set of solutions including reservations and distribution management, market intelligence-based decision support, and marketing services. Serving the hospitality industry since 1999 and headquartered in Schaumburg, IL, TravelCLICK has more than 12,000 customers in 140 countries.

SOURCE Genstar Capital, LLC