Amadeus announces US$830m acquisition of Navitaire
Amadeus today announced that it has agreed to acquire Navitaire, the leading technology provider to the low cost airline industry, from Accenture for US$830m.
Luis Maroto, President & CEO of Amadeus says in an e-mail to the employees:
This acquisition, once completed, will be the largest in our history and will give Amadeus a strong presence in the low cost and hybrid airline segment, enabling us to serve a wider group of airline customers. We estimate that this segment will experience strong growth in the coming years, with passengers boarded rising almost 70 percent between 2012 and 2020, and the addition of Navitaire, the leading PSS provider in the segment, would give us good exposure to that growth.
Navitaire, which has its headquarters in Salt Lake City in the U.S. and has other major sites in Minneapolis and Manila (Philippines), has built an outstanding business in the sector with a truly global customer base that includes Ryanair, Germanwings and Vueling in Europe, Scoot and AirAsia in Asia Pacific, Gol, Azul and Interjet in Latin America and Spirit in the U.S. In total, Navitaire has more than 50 customers for a product portfolio built on its PSS New Skies. Navitaire is profitable, growing and represents an excellent opportunity for Amadeus to address the opportunities in the low cost segment.
As a result of the deal about 550 employees will transfer to Amadeus, including the company’s entire management team, bringing a wealth of know-how and experience that we expect to benefit many areas of Amadeus’ business, not just Airline IT.
Navitaire will be run as a distinct business unit. We view the business as completely complementary to that of the existing Airline IT unit with New Skies aimed firmly at the low cost and simple hybrid segments, while Altéa is targeted at Full Service Carriers and Complex Hybrids. We intend to develop and invest in both platforms, offering airlines a greater breadth and depth of services, although over time we expect the functionality of each to be used to improve the other.
In addition, we have also announced today that Airline IT and Accenture, Navitaire's parent company, have signed a strategic agreement that will bring together our product expertise and Accenture’s consulting and services capability to address opportunities in the airline market.