Revenue management software vendor Pros explores sale -sources

PROS Holdings

27/09/2023 16:09

(Adds share reaction in paragraph 5)
    By Milana Vinn
       Sept 27 (Reuters) - Pros Holdings Inc  PRO.N , a U.S.
provider of revenue management software to airlines and other
industries, is exploring options that include a potential sale,
according to people familiar with the matter.
    Pros, which has struggled to return to profitability, is
being advised by investment bank Qatalyst Partners in its
discussions with potential acquirers, the sources said.
    Many of the suitors are private equity firms whose offers
Pros has rejected, the sources added. The buyout firms have so
far been unable to come up with an attractive deal because of
the company's losses, and it is possible that negotiations
conclude without an agreement, the sources said.
    The sources requested anonymity because the matter is
confidential. Spokespeople for Pros and Qatalyst did not respond
to requests for comment.
    Pros shares jumped 13% on the news to $36.18 in early New
York trading on Wednesday, giving the company a market value of
$1.7 billion.
    Pros provides price optimization and revenue management
software for companies in various sectors, including aviation. 
    Founded in 1985, the Houston-based company has posted annual
losses since it started offering its software through cloud
computing in 2015, spending more on product development, sales
and other operations than it earns. 
    The COVID-19 pandemic, which weighed heavily on Pros'
airline clients, compounded its woes, and the company is not
projected by most Wall Street analysts to return to
profitability for at least the next three years.
    A silver lining for Pros has been its revenue growth as the
pandemic subsided. 
    It reported subscription revenue of $57.3 million in the
second quarter, up 14% year-over-year, with overall sales up 11%
year-over-year to $75.8 million. 
    It still reported a net loss of $13.29 million in the second
quarter, in line with its $13.85 million loss a year earlier.

 (Reporting by Milana Vinn in New York; Editing by Anil D'Silva
and Jane Merriman)
 ((Milana.Vinn@thomsonreuters.com; Twitter: @MilanaVinn; Reuters
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