Hotel Reservations Network has completed the acquisition of AceNet Travel Network LLC (“AceNet”) for a cash amount that has not been disclosed.
The transaction was structured as a purchase of LLC membership interests from the company`s founders. The company will operate as a wholly owned subsidiary of HRN.
AceNet specializes in selling discounted hotel rooms in Atlantic City, New Jersey. Like HRN, AceNet sells to consumers through its own websites, through its call center, and through third-party affiliated websites. Though the company is less than two years old, it is profitable and growing rapidly. The company is the largest seller of discounted hotel rooms in the Atlantic City market.
David Litman, Chairman and Chief Executive Officer of HRN, commented, “We have repeatedly stated our interest in selectively acquiring companies that are closely related to our core business of selling hotel rooms. AceNet is an excellent example of the type of company that appeals to us, and we are very pleased that they have decided to become part of Hotel Reservations Network.
The founders, Jon Talese and John Jackson, have excellent reputations within the hotel industry, both in Atlantic City and nationally, and they have a track record of success. We expect them to make big contributions to the future growth of Hotel Reservations Network.”
Bob Diener, President of HRN, stated, “The acquisition of AceNet is a strategic step for HRN as it will strengthen HRN`s position in the market. Also, Atlantic City is a strong drive-to market, since more than 95% of consumers that visit Atlantic City drive or take other forms of land transportation. Consequently, business in Atlantic City for AceNet and HRN rebounded very quickly after September 11th, and we expect our future growth there to be strong.”
Hotel Reservations Network is a majority-owned subsidiary of USA Networks Inc.`s Interactive Group.