Equity Group To Buy Pegasus For $275M

Hotel reservation and distribution technology form Pegasus Solutions today announced it has agreed to be purchased by an equity group led by Prides Capital Partners LLC for approximately $275 million. Publicly traded Pegasus' board of directors approved the proposed deal, which must be approved by shareholders. Pegasus officials said they expect the deal to close in the first half of 2006.

No management changes were included in the announcement, and Pegasus officials said the firm would continue to offer its suite of distribution and reservation products.

"Our focus will continue to be on delivering technology and business process solutions that help hotels and travel distributors come together to maximize revenue and profitability," said chairman and CEO John Davis.

"We will maintain the same service lines and products and will continue to focus on improving those products and the speed with which we bring them to market," added Bob Boles, Pegasus' COO.