Spanish travel technology firm Amadeus has agreed to acquire Accenture Plc's wholly-owned subsidiary Navitaire for $830 million to focus on digital services for airline passengers. The deal is subject to regulatory approvals and is expected to close by December.
As part of the deal, Navitaire's 550 employees including the company’s senior management team, would move to Amadeus.
The acquisition will help the company enter the low-cost and hybrid-carrier airline segments.
Navitaire provides revenue-generation and cost-streamlining solutions in the areas of reservations, ancillary sales, loyalty, revenue management, revenue accounting and business intelligence. It has a global customer base of over 50 operators.
“Airlines of all shapes and sizes face an increasingly competitive market for an increasingly demanding traveller, and this transaction will give us the ability to serve all airlines with technology that can enable them to drive revenues and contain costs," said Luis Maroto, president and CEO of Amadeus.
Amadeus and Accenture have also signed a couple of more agreements. According to the first agreement, they will focus on passenger-centric digital services for airlines and Amadeus will become a strategic partner for its airline IT business. Under the second tie-up, Accenture will provide infrastructure outsourcing, application and research and development services to Amadeus. It will continue to provide hosting services for current Navitaire’s clients as well as Amadeus’s future clients that purchase the Navitaire solution.
Accenture, a global management consulting, technology services and outsourcing company, has more than 336,000 employees in over 120 countries.
Spanish Stock Exchange-listed Amadeus provides technology solutions for the global travel industry. The company employs around 13,000 people globally. It has a large presence in India. Recently, travel firm Thomas Cook India signed a technology agreement with Amadeus.