The Riverside Company has signed an agreement to acquire Guestline Limited, a provider of software used in the hospitality industry. Riverside has experience investing in software companies having completed more than 60 investments in the sector.
Guestline’s range of products cover all areas of hospitality and hotel management, including property management software, channel distribution, digital marketing, payment card compliance and electronic point-of-sale systems. The company’s cloud-based software is used by independent hotels and hotel chains, and serviced apartments (a furnished apartment available for both short-term as well as long-term stays, providing all the hotel-like amenities) to increase room occupancy, average room rates and asset yield. Guestline was founded in 1991 and has approximately 100 employees. The company is based northwest of Birmingham in Shrewsbury, UK (www.guestline.com).
Riverside will assist Guestline in further penetrating the UK market and entering new markets, develop new products, and expand the company through add-on acquisitions. “Guestline’s products are proven to seamlessly and easily generate revenue for customers,” said Riverside Partner Martin Scott. “It is an exceptional platform for growth, as the company has strong expansion potential both in its home market and internationally.”
Guestline is led by its CEO Phil Davidson. “We have found the right partner in Riverside to support the next phase of our growth. Riverside will help us increase the pace of improvements for customers by delivering new services and retaining our cutting-edge technology advantage, which will also drive growth both in the UK and internationally.”
The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $300 million. Since its founding in 1988, Riverside has invested in more than 420 transactions. The firm’s international portfolio includes more than 80 companies. Riverside is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).
Working with Mr. Scott on the transaction for Riverside were Vice Presidents Tommy Seddon, Marcin Goszyk and Associate Alicia Wnorowski. Mr. Seddon also sourced the transaction for Riverside.
BDO (www.bdocap.com) advised Riverside on the transaction and Jones Day (www.jonesday.com) provided legal advice.
Altium Capital (www.altiumcapital.com) was the financial advisor to Guestline and Grant Thornton (www.grantthornton.co.uk) provided accounting (commercial and tax) advice. Pinsent Masons (www.pinsentmasons.com) was legal counsel to Guestline.
© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 3-18-16
