Amadeus is splashing the cash again - it is buying German corporate travel technology company i:FAO in a deal valuing the company at Euro 67 million.
The deal will see Amadeus buy 68.5% of the i:FAO share capital held on the Frankfurt Stock Exchange and will be subject to shareholder and regulatory approval in Germany.
The tender offer is for around Euro 15 per share and is subject to acceptance by 75% of i:FAO shareholders, representing after cash adjustments a value of Euro 67.2 million.
i:FAO's flagship product is known as Cytric, a corporate travel buying software system which is customised for each client. Customers include a string of corporate giants including Canon, Ikea, PWC, Siemens and Electrolux.
Amadeus senior vice president for distribution, Holger Taubmann, says:
"This deal extends our reach and further develops our offering in a key area, and will significantly increase our growth opportunities in the corporate travel IT business.
"Corporations are one of the biggest consumers of travel services, and they account for about 45% of all trips made worldwide.
Amadeus says the corporate travel IT business is estimated to be worth around Euro 2-3 billion a year.
i:FAO was created in 1977 as a corporate travel agency but during the 1990s developed into travel IT company focusing on German speaking markets – Germany, Austria, Switzerland.
It also has a presence in the UK, Scandinavia and other Central European countries. i:FAO listed on the public markets in Frankfurt in March 1999.
The deal will see 170 members of staff, including the management team, joining Amadeus.
Louis Arnitz, founder and CEO of i:FAO Group, adds:
"Our experience, though, tells us that, more and more, global end-to-end travel IT solutions are critical for big multinational corporations’ requirements. Becoming part of a truly global leader in the travel industry with Amadeus, will allow us to develop the ability to meet our customers’ requirements worldwide."
i:FAO will be the third acquisition in the space of as many months for Amadeus.
It paid $500 million to get its hands on Newmarket International in late-December last year, bolstering its ambitions to move into the hospitality IT sector.
Amadeus bought airport IT company UFIS in February this year for an undisclosed fee.
NB:Travel keyboard image via Shutterstock.