BirchStreet Systems, a US-based procure-to-pay (P2P) solutions provider for the hospitality industry, has acquired domestic peer ReactorNet Technologies for an undisclosed amount.
For BirchStreet, the move is set to enhance its leadership in the hospitality industry, particularly in the select service segment of hotel management, while also opening up new vertical growth opportunities.
Founded in 2000, ReactorNet offers EPRO, a P2P solution serving a range of sectors including hospitality.
Its platform is instrumental in managing over $2bn of annual customer spending across more than 4,000 customer locations and 16,000 distinct users.
The platform's core features include purchasing management, accounts payable automation, capital project management, inventory management, recipe management, and reporting and analytics.
After the acquisition, ReactorNet's active management shareholders will continue operating the company as BirchStreet's select service offering within the hospitality sector.
BirchStreet CEO John Fay said: “We welcome ReactorNet's customers to the BirchStreet community and continue our commitment to helping hospitality brands operate more efficiently, make data-driven purchasing decisions and create profitable business outcomes.
“The addition of ReactorNet's technology, people and expertise strengthens our ability to provide value to all our customers.”
ReactorNet co-founder Anita Watts said: “We are thrilled to join the BirchStreet family. The resources of BirchStreet and its investors will allow us to accelerate the innovation of our products and services to meet the complex needs of our growing customer base.
“We've found a partner who shares our values, culture, and commitment to the success of our customers.”
Last November, Hyatt Hotels entered a strategic partnership with BirchStreet Systems.
This collaboration is a significant step in the hotel group’s efforts to modernise its procurement processes.
Hyatt's partnership with BirchStreet Systems is expected to streamline procurement operations, enhance efficiency, and drive cost savings.
These improvements are anticipated to contribute to an elevated guest experience by leveraging key solutions such as a cloud-based procure-to-pay platform, supplier management and collaboration and data-driven decision-making.
