Amadeus, the leading technology partner to the travel industry, has announced its intention to acquire i:FAO through a tender offer process, conditional upon acceptance by a minimum of 75 per cent of shareholders and regulatory approvals.
Louis Arnitz, chief executive, i:FAO Group, and other major shareholders have committed to sell their shares into the tender offer to be launched by Amadeus.
In total, Amadeus has secured 68.5 per cent of i:FAO’s share capital in the form of irrevocable undertakings to tender.
i:FAO Group is a leading provider of travel management technology solutions for corporations in Germany and is traded on the Frankfurt Stock Exchange.
“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”, said Holger Taubmann, senior vice president, Distribution, at Amadeus.
“Corporations are one of the biggest consumers of travel services, and they account for about 45 per cent of all trips made worldwide.
“The Corporate Travel IT business - focused on providing corporations with applications to help automate travel policy, handle their booking flow and simplify the travel expense claim process – is currently estimated at around €2 to €3 billion a year, with significant growth expected over the next years.”
I:FAO Group, headquartered in Frankfurt and with its main development sites in Sofia (Bulgaria), has a significant presence in the German Corporate Travel IT market through its flagship cytric solution, which has an open and flexible architecture that allows easy customisation to specific clients requirements.
i:FAO will bring established relationships with blue-chip corporate customers. As a result of the deal, around 170 professionals, including i:FAO Group’s executive management team and more than 100 developers will join Amadeus.