Enterprise Holdings, the world’s largest car rental company, announced its intent to acquire San Francisco-based Deem.
Deem is an innovative managed-travel technology platform that includes Deem Work Fource and Deem Ground Work, a suite of online booking and travel technology products for business travelers, travel managers, travel-management companies and suppliers.
More than 50,000 corporate customers and the world’s largest travel-management companies already use Deem’s travel and ground transportation software. Upon final acquisition, this transaction would provide Deem with an infusion of capital and resources to help further expand its product roadmap and increase the pace of product development and enhancements.
"Deem’s combination of intellectual property and tech talent represents a significant opportunity for Enterprise Holdings to further enhance and expand our portfolio of services," said Greg Stubblefield, Executive Vice President and Chief Strategy Officer for Enterprise Holdings, which owns the Enterprise Rent-A-Car, National Car Rental and Alamo Rent A Car brands.
Enterprise Holdings serves more than 95 percent of the worldwide car rental market and has been a minority investor in Deem since 2016.
Enterprise and Deem have been working together to bring travel and ground transportation solutions to customers. Since 2011, Deem has provided the technology behind Enterprise Holdings’ EHIDirect travel booking platform for small and medium-sized corporations. Most recently, Enterprise and Deem partnered together to offer National Car and Driver in China through the National Car Rental brand.
Through Work Fource, Deem provides access to innovative travel technology that makes the corporate travel booking and travel experience more efficient for travelers, corporations and their travel agency partners. Additionally, Deem’s Ground Work platform provides a suite of online tools for booking pre-reserved ground transport for corporations and travel management companies.
The acquisition is expected to close in the first quarter of 2019 after satisfaction of customary closing conditions. Deem will continue to operate autonomously from its Silicon Valley headquarters and offer its suite of business travel technology including air and hotel as well as ground transportation options across major rental car, black car, ride-hailing and rail service providers. John F. Rizzo will remain in his role as Chief Executive Officer, as will the rest of the Deem executive team.
“We know the industry wants travel management solutions that transform the traveler experience, while lowering corporations’ costs,” said Rizzo. "We will continue that mission to provide travelers with a streamlined platform that predicts what they want and need, and that works tirelessly for them in the background.”
Krish Panu, Chairman of Deem and Managing Partner of Deem investor, PointGuard Ventures, added, “It has been a privilege to have co-invested with Enterprise Holdings in Deem. With Enterprise’s capital and scale, Deem can expand its team and resources to drive its pace of innovation at a much faster rate.”
