Revenue management software vendor Pros explores sale -sources

PROS Holdings

27/09/2023 14:53

By Milana Vinn
       Sept 27 (Reuters) - Pros Holdings Inc  PRO.N , a U.S.
provider of revenue management software to airlines and other
industries that has struggled to become profitable, is exploring
options that include a potential sale, according to people
familiar with the matter.
    Pros, which has market capitalization of about $1.5 billion,
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, according to the sources.
    The sources requested anonymity because the matter is
confidential. Spokespeople for Pros and Qatalyst did not respond
to requests for comment.
    Pros provides price optimization and revenue management
software for companies in various sectors, including aviation. 
    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)
 ((Milana.Vinn@thomsonreuters.com; Twitter: @MilanaVinn; Reuters
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