Ever wonder about the daunting challenge that Expedia Group CEO Peter Kern inherited from predecessors Dara Khosrowshahi and Mark Okertstrom when Kern took the chief executive spot under Barry Diller…
Sqills has won more contracts from railway operators to upgrade their inventory, booking, and ticketing software than any other tech vendor in recent years. So this acquisition makes sense.
Rising interest in intercity train travel has been amplified by new European incentives that favor greener forms of travel, plus deregulation. But rail operators are hampered by their old IT systems, which aren't ready to sell to international travelers in the Google era.
SilverRail had become an afterthought in Expedia Group's plans as the online travel agency attempts to simplify its portfolio. SilverRail management, however, still believes in the promise of the sector.
There used to be only two ways for railways to make money: luck and state handouts. But that's changing, as countries look at privatization and as railways look to technology to streamline operations. Sqills and SilverRail are two tech vendors that smell an opportunity.
Expedia's purchase price for a majority stake in SilverRail was double the sum that SilverRail had raised from investors. The price tag was a multiple of the investment but not a stellar exit for shareholders.
Expedia recognized some time ago that it needed to wire up rail providers, particularly in Europe and Asia, and now it is securing a technology leader in the space for its portfolio of transportation solutions.