Fourth Hospitality, which provides back office technology to the hospitality sector, has purchased US-based Adaco for an undisclosed amount.
The business, which has had ECI Partners as a private equity backer for 18 months, will now have an operating base in the US located at software-as-a-service business Adaco’s office in Connecticut.
When Fourth’s management team initially closed the management buy-out (MBO) of the company in a deal led by then managing director Ben Hood, it took on investment so that it could grow internationally, finance new product development and fund bolt-on acquisitions.
Restaurant entrepreneurs Derek and Edwina Lilley initially set up the business in 1999 and stayed on as investors when ECI Partners entered. It has customers including Jamie Oliver’s Jamie’s Italian restaurant chain and doughnut retailers Krispy Kreme.
According to Fourth Hospitality, the combined business will have 250 employees and clear development roadmaps.
Hood, now CEO of Fourth Hospitality, comments, ‘This acquisition fits well with our international ambitions.
‘Adaco has a fantastic reputation for innovative solutions for the hotel sector in the US and beyond and the synergies between the between the two businesses are considerable.’
Adaco president Sunil Ippagunta will now join the board of Fourth Hospitality.
David Ewing, director at ECI Partners, adds, ‘Since our initial investment, Fourth has performed strongly and we are pleased to support the acquisition of Adaco with further funding.
‘The combined group will have sales in excess of £23 million with healthy margins and cashflows.’