In a news conference local giant tour operator De Palm Tours announced the acquisition of Atlantis Adventures. Atlantis offers submarine and semi-submarine excursions. Additionally they offers shore services to cruise lines. Officials from both companies announced that that the transaction was finalized on February 1, 2011 (almost two weeks ago), without offering details about the sum involved. This transaction was rumored for some time and comes as no surprise. Atlantis was purchased back in the 90s for $4 million by the – now – former owners.
De Palm Tours claims it won’t effect the operation of neither company as both companies will continue to operate separately. On the short term perhaps but not on the long term. I believe this acquisition makes a lot of sense. Now De Palm Tours has a better filled portfolio of products and services. Whether or not this deal will be beneficial to the customers has yet to be seen.
I see some issues down the road, however. De Palm Tours has now become more powerful in the shore excursion scene, beware cruise ships. I foresee a cut in positions in the future. For example, some of these excursions are executed with two staff (De Palm Tour bus driver and Atlantis tour guide) which now could be done by just the driver alone. Lastly, just a few months ago Atlantis partnered with another company – in direct competition to De Palm Tours – to launch a bus tour operation that now has an uncertain future. Acquisitions are very uncommon in Aruba, only deep pocketed companies (or have good connections to local banks) are able to do this and there aren’t too many of them.