Mobacar inks deal with New York-listed travel group that should multiply revenue
Kerry car-hire software start-up Mobacar has inked a deal with an international travel commerce group which its chief executive describes as "transformational" to the business.
The company has secured a partnership with US travel platform Travelport. The deal will give Mobacar access to Travelport's customers around the world.
Mobacar offers a real-time network of transportation options to business clients such as airlines and online travel agents.
It claims to have the largest array of ground-transportation options in real-time in the world.
It operates in the same space as Cartrawler, the car-hire technology business created by brothers Niall and Greg Turley and now owned by private equity firms BC Partners and Insight Ventures, which recently signed a major deal with Ryanair.
New York-listed Travelport, meanwhile, provides an array of digital solutions to the global travel industry. It has a presence in more than 170 countries with around 3,500 employees.
"This deal with Travelport is huge for Mobacar on the demand side," said chief executive Mike Webster.
"It will drive hundreds of thousands of transactions to us. It should help to multiply current revenue quickly."
Webster, Mobacar's founder, spun the company off from Kerry financial-software business Fexco in early 2014, having previously worked there as a senior executive.
Mobacar will seek to hire around 10 extra people toward the end of the year to support the extra business created, adding to its current team of 35.
The company was valued at around €20m before closing the deal with Travelport, based on a fundraising exercise completed last year.
Dublin private-equity firm Delta Partners and AutoEurope, which is owned by New York private equity firm Courtsquare, invested €4m in the company, which is based in Killarney, last September.
Cartrawler was reported to be in talks to buy AutoEurope months before, but it is thought that deal fell through.
Sunday Indo Business