Amadeus IT Holding SA agreed to buy Accenture Plc’s Navitaire for $830 million as the flight-bookings provider seeks to add products that target low-priced airlines. The company tends to focus on areas such as reservation and loyalty programmes.
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Amadeus, which provides technology to travel companies, expects to complete its purchase of Navitaire, a subsidiary of United States management consulting firm Accenture, in the fourth quarter of 2015, the company said in a statement.
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.
Under the terms of the deal, Accenture will be designated as a “strategic partner” for the Amadeus airline IT business, Amadeus said.
Accenture simultaneously entered into a partnership with Amadeus, to provide airlines with outsourced IT services that will generate additional revenue for the company.
Services it provides include cost-cutting software and revenue-generation platforms, as well as accounting and business intelligence.
As part of the deal, 550 Navitaire employees, including senior management, are expected to move to Amadeus.
Amadeus CEO Luis Maroto said that the acquisition will give his firm a leg up in the low-priced and hybrid-carrier segments.
Accenture will also provide Amadeus with infrastructure outsourcing, application and research and development services.
The Accenture and Amadeus alliance will offer consumers a more flawless travel experience.
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David P. Evans, Navitaire CEO, said, “Today’s announcement marks a new chapter for Navitaire that will enable us to accelerate and deepen our industry offerings”. Therefore, the acquisition will give Amadeus a wider customer base in the airline industry. Our customers will benefit from greater access to Amadeus’ industry solutions to help support their growth and link with traditional industry partners.
