Payments technology company Flywire has acquired Sertifi, which specialises in hospitality and travel payments, for $330m through a mix of cash and debt.
It is expected to bolster Flywire’s existing travel payments business by introducing a new product category with proven adoption among hotel brands.
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Sertifi’s hospitality-specific solutions offer Flywire “immediate access” to new subsegments of the global travel industry.
This acquisition is expected to generate added value for Flywire’s client base.
Sertifi’s specialises in digitising hotel workflows for events and group bookings complements Flywire’s strategy to scale these solutions internationally.
The company’s solution simplifies event contracting, group bookings, and payments, enabling hotel sales staff to enhance service delivery.
Flywire anticipates that Sertifi will contribute an estimated $35-40m in revenue with gross margins comparable to Flywire’s by FY 2025.
While Sertifi is expected to yield positive Adjusted EBITDA, Flywire plans to invest in the combined business’s growth, which may result in a lower Adjusted EBITDA margin for Sertifi compared to Flywire’s overall margins.
Flywire CEO Mike Massaro said: “The acquisition of Sertifi represents an exciting next phase of growth for our Travel vertical, where our deep industry expertise and global footprint continue to be key differentiators.
“By expanding into a large new subsegment of the hospitality industry with strong ecosystem alignment, and gaining a software solution in the early stages of its payments monetisation journey, we are unlocking new growth and innovation opportunities for Flywire.”
Last month, Flywire partnered with State Bank of India to facilitate the digital disbursement of education loans in Indian Rupees to higher education institutions globally.
