IBS Software acquires US company

The Thiruvananthapuram-based IBS Software Services, an IBS Group firm, has announced the acquisition of Washington DC-based travel technology systems provider Discovery Travel Systems (DTS).

The acquisition marks IBS' foray into the leisure travel and tour industry. The cash and earn-out deal has been effected a 60:40 ratio in favour of IBS, said V K Mathews, chairman and managing director of IBS. He, however, refused to spell out the financial specifics of the deal.

Post-acquisition, the new division of IBS, which has been christened IBS Americas, is expected to help IBS position itself as one among the leading providers of technology systems for the business requirements of tour packagers, vacation travel marketers and cruise lines.

The deal has effected IBS's acquisition of all facilities, resources and operational control of existing and future businesses of DTS.

Discovery Travel Systems, which has an impressive client base that includes cruise companies like Star Cruise, Cunard, Royal Caribbean as well as tour and vacation firms like Brendan vacations, will now leverage IBS' extensive resource pool, global presence and delivery capabilities to meet customer needs and enhance its area of operations.

"Discovery Travel's operations in the leisure travel domain will complement our business relationships with airline companies, travel agencies, hotel chains and car rental agencies and augment IBS' strengths in areas like airline reservations and check-in," Mathews said.

"Besides, the acquisition will help IBS diversify into other segments of the travel industry," he added. John Broughan, president, DTS, who also spoke at the event to announce the takeover, said that DTS's personalised approach with each client would now be enhanced by the expertise of the professionals at IBS.

The deal has also resulted in bringing three core products from the DTS stables to IBS. Tour Partner, which addresses the vacation packaging needs of the travel industry, Cruise Partner, a web-based cruise reservation and inventory management system, and Ship Partner, a property management system for the cruise industry would now be part of the IBS portfolio.

The take over of DTS is IBS' s second major acquisition in recent years. The company had acquired Avient Technologies, a unit of Honeywell International in 2003. This buyout had helped IBS expand its portfolio to the air transportation industry. IBS, which has facilities in Thiruvananthapuram and Kochi at present, offers software solutions that manage mission-critical operations of major airlines, airports, oil and gas companies and seaports worldwide.

The company's services also include software development, business and technology consulting, turnkey solutions, customer support and application maintenance.