Amadeus targets LCCs with deal for Accenture’s Navitaire

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Thedeal will give Amadeus access to Navitaire's solutions for the low-cost airline segment (photo by KY Tan)
Thedeal will give Amadeus access to Navitaire’s solutions for the low-cost airline segment (photo by KY Tan)

Amadeus has agreed to acquire Navitaire, the Accenture subsidiary that provides technology and business solutions to the airline industry.

The US$830 million deal will give Amadeus access to Navitaire’s solutions for the low-cost airline segment, complementing Amadeus’ Altéa suite for full-service carriers. Amadeus intends to market and sell the two product portfolios separately.

“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 & CEO of Amadeus.

“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 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. The deal is scheduled to close in the fourth quarter of 2015, following regulatory approvals.

In a separate agreement, Accenture and Amadeus have agreed to form an alliance to help airlines navigate the digital transformation taking place in the industry, in the areas of technology, analytics, cloud solutions, mobility and operations. The companies said the intention of this alliance is to “provide a more seamless traveller experience from door to door”.

Under the agreement, Accenture will be designated as strategic partner of Amadeus’ Airline IT business.

Finally, a third agreement has been agreed, under which Accenture will provide Amadeus with infrastructure outsourcing, application and research and development services. Accenture will continue to provide hosting services for current Navitaire clients as well as Amadeus’s future clients that purchase the Navitaire solution.

“Today’s announcement marks a new chapter for Navitaire that will enable us to accelerate and deepen our industry offerings,” said David P. Evans, Navitaire’s CEO. “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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