Travel technology specialist Comtec is believed to be in talks with venture capitalists as a means of funding further expansion. Speculation surrounding the company’s strategy has been mounting in recent days and it is thought Comtec could be quite far advanced in conversations with potential acquisitions. Chief executive Simon Powell declined to comment on talks…
Comtec seeks funding for growth strategy
Travel technology specialist Comtec is believed to be in talks with venture capitalists as a means of funding further expansion.
Speculation surrounding the company’s strategy has been mounting in recent days and it is thought Comtec could be quite far advanced in conversations with potential acquisitions.
Chief executive Simon Powell declined to comment on talks with VCs but said the company was ‘well placed’ to lead consolidation in the technology sector.
Powell said: “The technology required by the industry has converged – tour operators need access to bedbanks, travel agents are running tour operations and there are airline sites competing with travel agents and tour operators. There is not a one-stop technology shop that does everything.”
He added that there were gaps in Comtec’s product range in areas such as CRM, content management systems and rich media content.
Powell hinted that a content driven deal buying in rich media such as destination videos and maps was most likely.
“There are another two or three bases that could be covered and consolidation brings some major opportunities for a supplier to broaden the services it offers. Now Comtec is totally in private hands we are looking at how we can formalise our plans.”
In November, the company bought back its 20% stake sold to Amadeus in 2004.
In the short term Comtec is focused on expanding its component building technology to major clients.
* The Co-operative Travel Group has replaced Comtec as its system supplier in favour of the Vertical Group’s TARSC technology. Comtec will continue to work with the Co-op until the end of its contract in January 2010.
