In an effort to accelerate the development of its e-commerce products and solutions and to spur the growth of the company, Montreal-based Logibro Inc., has secured a new round of financing, restructured its senior management team, and reduced its workforce by 35 employees.
The Destination Group, a leading private equity firm specializing in the leisure travel industry, and CDP Sofinov, a subsidiary of the Caisse de dép™t et placement du Québec, will provide financing for Logibro’s operations and R&D.
As part of this financing, Logibro concluded a management agreement with The Destination Group, in which Simon Todd, a principal with the equity firm, will become CEO of Logibro. Todd, a principal with The Destination Group, brings 20 years of senior level executive experience in the travel industry. The current CEO, Richard Brossoit, will become board chairman and chief strategy officer,
“This new round of financing, the changes we’ve made at the senior management level, and our increased focus on customer satisfaction, are all part of our strategy for consolidating Logibro’s leadership position and strengthening the company over the long term,” Todd said. “A second round of financing from CDP Sofinov is a strong vote of confidence in Logibro, its position in the market, and its potential moving forward.”
Richard Brossoit, who retains a significant ownership interest in the company, said, “These are very positive developments for Logibro as a company and for myself personally. With the company’s executive leadership in Simon Todd’s capable hands, I will be able to devote more time to the technology and strategies that will take us to the next level.”
Claude Guay, who joined Logibro in January as executive vice president, marketing, sales and business development, has been promoted to chief operating officer. Prior to joining Logibro, Guay spent 16 years at IBM. He held positions within IBM Global Travel & Transportation Industry Unit that included management consulting, marketing and business development, and travel distribution solutions.
Guay headed the IBM team that built a portfolio of solutions for Marketing, Sales and Customer Service for the travel industry including electronic ticketing, self-service kiosks, Internet distribution, and customer relationship management.
In addition to building up its management team, the company cut 35 positions. According a company spokesman, Logibro decided to cut the positions was a part of “re-engineering” that will help the company gain capital to grow. The cuts were made in various departments, according to the spokesman.
The additional capital also will help the company follow through with plans to offer its solutions in an ASP model. Logibro announced last July that it plans to complement its Web-based product environment, by acting as an Application Service Provider (ASP), whereby clients can access the applications with less investment and with more flexibility.
Logibro designs, develops and markets technology solutions and services for the leisure travel industry. Logibro provides information technology (IT) business solutions and e-commerce transaction processing services. These enable tour operators to manage and control their internal business processes in an efficient and effective manner and to market and distribute their travel products through more extensive and convenient electronic distribution channels.