60px

451px

Amadeus

  Blog

Amadeus strengthens LCC offering with Navitaire acquisition from Accenture for $830m

Julia Sattel

Senior Vice President, Airlines, Amadeus IT Group

Amadeus has agreed to acquire Navitaire, a wholly owned subsidiary of Accenture (NYSE: ACN) that provides technology and business solutions to the airline industry, for US$830 million.

img


Navitaire, which has a global customer base of more than 50 operators , provides revenue-generation and cost-streamlining solutions for the low-cost and hybrid-carrier segments of the airline industry.

The addition of Navitaire’s portfolio of products and solutions – which span reservations, ancillary sales, loyalty, revenue management, revenue accounting and business intelligence - will complement our own Amadeus Altéa suite, enabling us to serve a much wider group of airline customers in the process.

Improve Connectivity

This acquisition – which will be earnings-accretive from day one – will also enable us to improve the connectivity between different carriers in the same airline groups or alliances. We intend to market and sell the two product portfolios separately, continuing to invest in both platforms and enhancing the services and functionality availability to all types of carriers.

Amadeus and Accenture expect to close the Navitaire acquisition in the fourth quarter of calendar 2015, following customary regulatory approvals.

In a separate agreement, Accenture and Amadeus have agreed to form an alliance to focus on passenger-centric digital services for airlines. 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. Amadeus and Accenture will jointly focus on digital travel services, with an emphasis on commercial passenger operations in order to provide a more seamless traveler experience from “door to door”.