Technology firm Amadeus has strengthened its position in the corporate travel IT market with the acquisition of German technology company I Fao Group.
The deal will see Amadeus secure 69.5 per cent of I Fao’s share capital subject to shareholder and regulatory approval.
Amadeus said the acquisition will allow it to offer more services to its clients including expense management. The firm also believes the corporate travel IT business is worth around €2-3 billion a year.
I Fao Group is a provider of travel management technology solutions for corporations in Germany and is traded on the Frankfurt Stock Exchange.
Under the terms of the agreement Amadeus will pay €15 per share with a total enterprise value – after cash adjustments – of €67.2 million.
Amadeus senior VP for distribution Holger Taubmann, said: “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.”