Spanish travel technology company Amadeus said it would buy Navitaire, a subsidiary of Accenture Plc , for USD 830 million, to focus mainly on digital services for airline passengers.
Amadeus said it expects the deal, which is projected to close in the fourth quarter, will have a minimal impact on its financial performance this year. It said the deal would be earnings accretive from the first day.
About 550 Navitaire employees, including the company’s senior management team, are expected to transfer to Amadeus, the company said in a statement on Wednesday
Navitaire which provides technology services to over 50 of the world’s airline operators, focuses more on the low-cost and hybrid segments in the airline industry.
Amadeus said it believes that the acquisition of Navitaire would enable it to improve the connectivity between different carriers in the same airline groups or their alliances.
The addition of Navitaire's portfolio would enable Amadeus to serve a wider group of airlines.
Under the terms of the deal, Accenture will be designated as a “strategic partner” for the Amadeus airline IT business, Amadeus said.
The company reported revenues of 3,417.7 million euros (USD 3.77 billion) for the year ended Dec. 31.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
