Amadeus, the leading global distribution system (GDS) and travel industry technology provider, announced an agreement to invest…
Amadeus, the leading global distribution system (GDS) and travel industry technology provider, announced an agreement to invest in Optims, the leading European supplier of IT services to the hospitality industry.
Under the terms of the transaction, Amadeus will acquire a 30 per cent shareholding in Optims through a reserved share capital increase, for a maximum of EUR 6 million, represented in EUR 4.8 million in upfront cash and EUR 1.2 million in a convertible loan. Optims is listed in the Paris Stock Exchange`s Nouveau Marche, with a 39 per cent float, while the rest is held by its founders, venture capitalists and financial institutions.
Completion of the transaction remains subject to the approval of the French market and German merger control authorities, as well as Optims` extraordinary shareholders` general meeting to be held on 31 October 2003 at the latest.
This investment comes with the signature of a development, technology and marketing agreement which sets up a co-operation framework for Amadeus and Optims to further develop and promote their respective products in the hospitality sector individually and, eventually, as integrated or bundled systems.
With an important presence in France, Germany, Spain and other European countries, Optims serves over 5,500 hotel customers, including Accor, Barcelo Hotels & Resorts, Envergure, Four Seasons and the Savoy Group, in more than 70 countries around the world, offering a complementary range of products for the sector which include:
Property Management Systems -PMS- (Front Office, Back Office, Point of Sales and Inventory Management Interfaces), Yield Management Solutions (known as Revenue Management Systems-RMS), Central Reservation Systems (CRS), Customer Relationship Management (CRM).
By working closely with Optims, Amadeus will further build upon its technological expertise and understanding of the hospitality market, meeting the requirements of the direct and online distribution channels in the hotel industry. Likewise, and given its ample expertise in the provision of services under the ASP mode, Amadeus will support Optims in the technical development of a new generation of products and services from its leading-edge data centre located in Erding, Germany.
As Amadeus has proven successful in providing airlines with reservations, inventory and departure control services, this deal also demonstrates Amadeus`s commitment as one of the leading suppliers of IT services for travel suppliers and distributors.
This agreement will enable Amadeus-connected travel agencies and online travel providers access to offer and make reservations through the Optims Group CRS – Otedis – offering inventory of approximately 4,000 hotels.
Our knowledge of the tourism industry, built on permanent dialogue with our customers, mirrors the Amadeus business approach, said Antoine Medawar, CEO of Optims. Amadeus is the perfect fit for Optims` value proposition. Together we`ll be able to build a bundled new generation global offering for the hospitality and tourism sectors, which will include PMS, CRS, electronic distribution and Yield Management. In addition, Amadeus will provide us with an unbeatable distribution capability both for our products and services and for our clients` inventory.
Amadeus will take another step forward by bringing an extensive and customised offering to the hospitality sector, said Amadeus Senior Vice President, Corporate Strategy, Philippe Chereque. Through this investment in Optims, we are increasing our hotel-related technology expertise and strengthening Optims` ability to further enhance their IT services for customers.
The two companies will provide the leading-edge vertically integrated inventory and distribution solution that the hospitality industry has long been waiting for, seamlessly connecting all distribution channels to a centralised, single-image inventory of room availability and rates. Furthermore, with Optims, Amadeus customers will benefit from an additional range and depth in our hotel distribution solutions, also improving the bookable content offer to our travel distribution partners, Chereque added.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
