Flywire Corporation, a global payments enablement and software company with a market capitalization of $2.22 billion and impressive revenue growth of 26.5% in the last twelve months, announced the acquisition of Sertifi, a software platform specializing in hospitality workflow digitization and payments. According to
InvestingPro data, the company's stock has recently experienced a significant decline, falling nearly 12% in the past week. This strategic move, valued at $330 million, is set to expand Flywire's travel payment operations into new segments of the travel and hospitality industry, including major hotel brands and luxury accommodations. The company's strong financial health, evidenced by a healthy current ratio of 2.33 and robust gross margins of 63.61%, positions it well for this expansion.
Sertifi's platform is known for its integrations with global Property Management Systems and Events & Catering systems, which streamline hotel operations and event bookings. With a client base spanning 20,000 unique hospitality locations, Sertifi has been recognized for its contributions to the industry, recently earning the title of Best Payments Processing Software (ETR:
SOWGn) in the 2025 HotelTechAwards for the second consecutive year.
Flywire's acquisition of Sertifi aims to leverage this technology to provide additional value for its extensive client roster, with immediate access to new subsegments of the global travel industry. Sertifi's success in digitizing hotel workflows around events and group booking sales is expected to be scaled internationally through Flywire's global market and partnership expertise.
The acquisition is forecasted to contribute approximately $35-40 million in revenue to Flywire in FY 2025, with gross margins similar to Flywire's current figures. Sertifi is also expected to generate positive Adjusted EBITDA, albeit at a lower margin percentage compared to Flywire's overall margin. Flywire plans to further invest in the combined business to foster future growth.
Flywire CEO Mike Massaro expressed enthusiasm about the acquisition, stating that it represents an exciting next phase of growth for their Travel vertical. He highlighted the alignment with the ecosystem and the monetization potential of Sertifi's platform as key factors in unlocking new opportunities for innovation and growth.
This strategic acquisition is anticipated to enhance Flywire's existing travel payments business by adding a new product category with scaled adoption among some of the world's largest hotel brands. It is based on a press release statement and more details are expected to be shared in an upcoming earnings call.
InvestingPro analysis suggests the company is currently undervalued, with analysts maintaining positive growth forecasts. For deeper insights into Flywire's valuation and growth potential, including 8 additional ProTips and comprehensive financial analysis, explore the full Pro Research Report available on InvestingPro.
In other recent news, Flywire's earnings and revenue projections have been a focal point for analysts. B.Riley adjusted their price target for Flywire to $29, maintaining a Buy rating, citing foreign exchange challenges affecting revenue projections. They noted the impact of Canadian market difficulties, which could lead to a significant $30 million revenue obstacle in 2024. However, they remain optimistic about Flywire's growth, highlighting strong performance in the healthcare, EMEA, APAC, travel, and B2B sectors. Meanwhile, Raymond (NSE:RYMD) James upgraded Flywire to a Strong Buy, raising the price target to $29, and emphasized expected mid-20% organic revenue growth and EBITDA margin improvements despite Canadian visa restrictions. They also noted Flywire's potential for strategic acquisitions with its $500 million cash reserve. In contrast, Seaport Global Securities downgraded Flywire from Buy to Neutral due to concerns over geopolitical issues in India and Canada, as well as potential declines in Chinese student enrollments in the U.S. These developments reflect varying perspectives on Flywire's prospects amid global market dynamics.