Flywire Acquires Sertifi: Expanding Travel Payments in Hospitality

Flywire (FLYW) has acquired Sertifi, a vertical software and payments platform for the hospitality industry, for $330 million.

This acquisition accelerates Flywire's expansion within the travel sector, specifically targeting the hotel subsegment. Sertifi's platform automates workflows and payments for hotels, integrating with major Property Management Systems (PMS) and Catering systems.

Flywire anticipates leveraging its global reach and expertise to scale Sertifi's solutions internationally and to monetize the significant payment volume already enabled by Sertifi's platform. The deal is projected to add $35-40 million in revenue to Flywire in FY 2025, with positive Adjusted EBITDA.

Mike Massaro, CEO of Flywire comments, "The acquisition of Sertifi represents an exciting next phase of growth for our Travel vertical, where our deep industry expertise and global footprint continue to be key differentiators."

"Flywire gains the opportunity to accelerate the monetization of several billion dollars of payments volume that Sertifi’s platform has enabled annually."

Key Themes

Strategic Expansion into Hospitality: The acquisition represents a significant strategic move for Flywire to penetrate a new subsegment of the travel industry, specifically hotels. This includes large, branded hotels, luxury hotels, and boutique accommodations. As CEO Mike Massaro states, "The acquisition of Sertifi represents an exciting next phase of growth for our Travel vertical, where our deep industry expertise and global footprint continue to be key differentiators."

Sertifi's Platform and Integrations: Sertifi offers a SaaS platform that streamlines workflows around event and group booking sales, enabling hotels to efficiently manage contracts, secure payment details, and complete payments. A key strength of Sertifi is its deep integrations with leading PMS and Catering systems like Amadeus's Delphi, Salesforce, Oracle's OPERA Cloud and OPERA 5, and Infor.

Monetization of Payment Volume: The acquisition allows Flywire to tap into the substantial payment volume already being processed through Sertifi's platform. Flywire gains "the opportunity to accelerate the monetization of several billion dollars of payments volume that Sertifi’s platform has enabled annually." This suggests a significant opportunity to increase revenue by capturing a larger share of the payments flow within Sertifi's existing client base.

International Scalability: Flywire intends to leverage its global go-to-market strategy and partnership expertise to scale Sertifi's solutions internationally. Flywire's existing direct distribution capabilities are expected to accelerate the adoption of Sertifi's platform by hotels worldwide.

Financial Projections: Sertifi is expected to grow faster than Flywire's company average. The company anticipates Sertifi to add approximately $35-40M of revenue with gross margins similar to those of Flywire in FY 2025. While Sertifi is expected to have positive Adjusted EBITDA, the margin percentage will be lower than Flywire's overall Adjusted EBITDA margin due to planned investments in growing the combined business.

Key Facts & Figures:

Acquisition Price: $330 million (funded by a combination of cash and debt)

Sertifi Client Base: Spans 20,000 unique hospitality locations, including brands like Marriott, Hilton, Hyatt, Sage Hospitality Group, and the Corinthia Hotel, London.

Projected Revenue Contribution (FY 2025): $35-40 million

Gross Margins: Expected to be similar to Flywire's current gross margins.

Integrations: Sertifi integrates with leading Catering and Property Management Systems such as Amadeus’s Delphi, Salesforce, Oracle’s OPERA Cloud and OPERA 5, and Infor.

Why did Flywire acquire Sertifi?

Flywire acquired Sertifi to accelerate its growth within the travel industry, particularly in new sub-segments such as large-scale branded hotels, luxury hotels, and boutique accommodations. Sertifi's integrations with hotel software and established presence in hospitality-specific workflows offer Flywire access to a wider range of clients and opportunities.

What is Sertifi's main focus and what solutions does it provide?

Sertifi provides a SaaS platform that digitizes hospitality-specific workflows and associated payments. It streamlines processes such as contract signing, secure exchange of payment details, and payment completion for hotels, focusing on events and group booking sales.

What integrations does Sertifi have within the hospitality industry?

Sertifi has integrations with leading Property Management Systems (PMS) and Catering systems, including Amadeus’s Delphi, Salesforce, Oracle’s OPERA Cloud and OPERA 5, and Infor. These integrations automate critical hospitality workflow processes.

What specific benefits does Sertifi bring to Flywire's travel business?

Sertifi augments Flywire's travel payments technology by adding dedicated hotel software integrations. This gives Flywire immediate access to new segments of the travel industry and automates critical hospitality workflow processes. Sertifi also provides the opportunity to monetize several billion dollars of payments volume.

How much did Flywire pay for Sertifi, and how was the acquisition funded?

Flywire acquired Sertifi for $330 million. The acquisition was funded through a combination of cash and debt.

What are the expected financial impacts of the Sertifi acquisition on Flywire?

Flywire expects Sertifi to add approximately $35-40 million of revenue in FY 2025, with gross margins similar to Flywire's. Sertifi is expected to have positive Adjusted EBITDA, although the margin percentage will be lower than Flywire's overall Adjusted EBITDA margin due to planned investments in growing the combined business. Sertifi's growth rate is anticipated to be faster than Flywire's company average.

What is Flywire's overall business model?

Flywire is a global payments enablement and software company. It combines its proprietary global payments network, next-gen payments platform, and vertical-specific software to manage complex payments for clients and their customers. Flywire focuses on integrating within existing accounts receivable (A/R) workflows across industries like education, healthcare, travel, and B2B.

What are the key client types that Sertifi serves?

Sertifi serves a diverse client base in the hospitality industry, including global brands such as Marriott, Hilton, and Hyatt, as well as luxury independent hotels like the Sage Hospitality Group and the Corinthia Hotel, London.