Amadeus to Acquire Navitaire from Accenture for $830M
Photo courtesy of Amadeus North America
Amadeus has agreed to acquire Navitaire, a wholly owned subsidiary of Accenture that provides technology and business solutions to the airline industry, for $830 million.
Navitaire focuses on low cost and hybrid carriers and has a global customer base of more than 50 operators. The company helps generate revenue and streamline costs in the departments of reservations, ancillary sales, loyalty, revenue management, revenue accounting and business intelligence.
Amadeus is hoping that the addition of Navitaire’s products and solutions for the low-cost segment will complement its Altea suite of offerings, largely serving a full-service customer base. Amadeus aims to sell the two portfolios separately, continuing to invest in both platforms to serve all types of customers.
Amadeus believes that the acquisition will improve the connectivity between different carriers in the same airline groups or alliances and that the functionality from each platform will enhance the other.
“Bringing Navitaire’s experience, industry know-how, client base and strong product portfolio is a significant step for Amadeus in the low-cost and hybrid-carrier segments,” said Luis Maroto, president and CEO of Amadeus, via a release. “Airlines of all shapes and sizes face an increasingly competitive market for an increasingly demanding traveler, and this transaction will give us the ability to serve all airlines with technology that can enable them to drive new revenues and contain their costs.”
As part of the acquisition, approximately 550 Navitaire employees, including the company’s senior management team, are expected to transfer to Amadeus.
Amadeus and Accenture expect to close the Navitaire acquisition in the fourth quarter of 2015, following regulatory approvals. Amadeus expects the acquisition to have minimal impact on its financial performance in 2015.
In the second of three deals between Accenture and Amadeus, Accenture and Amadeus also agreed to form an alliance aimed at leading airlines through the digital world and boosting global operations of airlines’ businesses. The alliance combines Amadeus’ and Navitaire’s industry solutions and experience with Accenture’s aviation expertise and global capabilities in technology, analytics, cloud, mobility and operations. Accenture and Amadeus will focus on digital travel services together, with an emphasis on commercial passenger operations in order to provide a more seamless traveler experience from “door to door."
Under the alliance agreement, Accenture will be designated as an Amadeus “Strategic Partner” for its Airline IT business for management consulting, technology consulting, systems integration, business process outsourcing and digital services, complementing Amadeus’ existing in-house consulting and digital services.
Under a third deal, Accenture agreed to provide Amadeus with infrastructure outsourcing, application and research and development services. Accenture will continue to provide hosting services for current Navitaire clients.
“The travel industry is a strategic market for Accenture, and we continue to grow our practice in this area to help our clients better serve their digital customers,” said Eric Schaeffer, senior managing director of Accenture. “The combination of products and solutions from Accenture, Amadeus and Navitaire in this alliance will create a unique offering in the market that no single provider currently offers. We’re also excited to be leveraging our experience in the airline industry and our technology expertise to provide Amadeus with a range of outsourcing and R&D services.”
Navitaire CEO David P. Evans added, “Today’s announcement marks a new chapter for Navitaire that will enable us to accelerate and deepen our industry offerings. Our customers will benefit from greater access to Amadeus’ industry solutions to help support their growth and link with traditional industry partners. At the same time, they will continue to benefit from Accenture’s expertise and capabilities as a result of the Accenture-Amadeus alliance.”
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