Travel technology firm TRX Inc. today announced plans to purchase data-consolidation competitor Hi-Mark Software for about $20 million. Officials expect the deal—TRX's second acquisition of a small travel technology specialist this year—to close next month.
TRX said that it plans to integrate operations and develop joint product plans, particularly in the areas of data processing and reporting, with Hi-Mark by March 31, 2007. "We will end up with one product platform that we will call DataTrax in the first quarter," TRX CEO Trip Davis told
BTN this afternoon.
Hi-Mark will continue to support clients of its products through December.
"Our plan is to focus on a very robust offering for the clients with lower-level offerings and price points up through higher-end offerings," Davis said. "Our goal is to be the leader in corporate travel reporting and to provide a number of options in price point and functionality that make sense for the market."
Davis said Hi-Mark will bring TRX several new agency and financial services clients, as well as a larger installed base of corporate travel reporting clients.
"The area of direct corporate buyer clients is an area we plan to focus much more intensely on as we go into 2007," Davis said. "There will be a new road map for that reporting offering that includes parts
of DataTrax and parts of Hi-Mark's software."
Thirteen-year-old Hi-Mark, founded by industry veteran Kevin Austin, offers data-consolidation and reporting technology that aggregates data from more than 2,000 companies and 25 different countries for its approximately 175 clients. That technology competed with small and large firms including TRX, as well as Cornerstone Information Systems and Prism Group. "The core leadership team at Hi-Mark has signed long-term employment agreements with TRX," Davis said.
TRX in August bought reporting and spend management technology provider Travel Analytics
(BTNonline, Aug. 3).