Pegasus and Travel Tripper will become one as part of a merger plan being backed by way of investment from private equity.
The two hotel technology providers are joining forces after Accel-KKR put in an undisclosed but "substantial" level of funding to support the move.
The two brands focus on reservation systems, distribution management and business intelligence services for hotels, with combined roster lists including Arora, Manotel, Bellstar, Meriton, Highgate and Elite Hospitality Group chains.
Subscribe to our newsletter below
The merged entity does not have a name as yet (and may retain one of the two existing brands), an official says, with the decision to be made in due course.
Travel Tripper president Gautam Lulla will also become president of the new business, with Pegasus CEO Sean Lenahan heading up the integration of the two existing companies.
Speaking to PhocusWire last year, Pegasus predicted a rosier future ahead after putting a turbulent few years behind it.
The company was once synonymous with the mechanics behind the the hotel sector, having overseen one of the first CRSs and considered one of the leading providers for many years alongside the likes of Sabre and Oracle.
There was split in the original business in 2014, when the distribution switch was spun-off to eventually become DHISCO and the main business sold to Regent Equity Partners.
CEO Sean Lenahan, who shifted over from principal role at Regent to take over the running of the company, said the business is growing year-on-year for the first time in five years.
Lulla was once a Pegasus employee, working as a product manager between 1999 and 2001, before leaving for a six-year stint at Amadeus. He co-founded Travel Tripper in 2008.
David Cusimano, a principal at Accel-KKR, says: "The industry has been dominated by a small number of large players, which has created a lack of choice in the market.
"The combination of Travel Tripper and Pegasus creates a formidable challenger to the other competitors in the hospitality technology space and provides another strong option for hotels looking for innovative technology solutions combined with the great customer service both companies are known for."