In the wake of Pegasus Solutions spinning off its central reservations system business to private equity firm Regent Equity Partners, a restructuring and layoffs are under way, according to a variety of sources.
Bill Rose, Pegasus Solutions’ chief information officer, who had been working on building a new platform for the company’s technology, has left Pegasus, according to his LinkedIn profile and a source. CFO Temple Weiss left the company in September and became CFO of CEC Entertainment.
CEO David Millili and chief sales officer Chris Wichers are leaving the company, too, according to a source.
Meanwhile, some 40 employees have been notified of layoffs in a first round of cuts, the source said.
Who’s Running What
Pegasus Solutions declined to comment on the developments, although business representatives have been telling people in the industry that there is a restructuring afoot, which isn’t surprising given the spinoff.
Neither Pegasus Solutions, which retained the distribution side of its business that connects hotel reservations systems to third-party distributors, nor Regent Equity Partners, which now owns the CRS business, have been forthcoming on their exact relationship post-spinoff and the structure of the two companies.
New Owner’s Message to Employees
Regent Equity Solutions did send out a communication, obtained by Skift, to Pegasus employees:
Dear Pegasus Team:
The purpose of this letter is to brief you on a historic moment for Pegasus. Effective immediately, the Pegasus Reservations business has become an independent, debt-free business with the backing of an international private equity firm. This represents a significant milestone for Pegasus, a company with a historic legacy that has driven innovation in the hospitality industry for decades. Together, we have an incredible opportunity to build upon this great legacy and further strengthen our technology and global footprint.
As the new owners of Pegasus, Regent Equity Partners has the resources to support the needs of the business and to make decisions that are in the best long-term interests of our customers, partners and employees.
Our firm and its principals have owned and invested in a range of businesses across a variety of industries and geographies. We believe that the Pegasus reservations business has tremendous potential to lead the industry and create new revenue streams and revolutionary technology to help hoteliers better serve their customers.
This new chapter for Pegasus will be filled with many opportunities to expand our global reach while never taking for granted how we got to this point, and where we came from.
You will receive regular updates through Town Hall Meetings, e-mail or through your respective managers.
We also wanted to thank each and every one of you for your service to Pegasus. You have all played an important part in the history of this great organization. Thank you for all that you do to contribute to Pegasus – together we can lead the industry and create truly exceptional products.
We look forward to meeting and working with everyone on the team.
The Regent Team