Canadian travel technology specialist GuestLogix has agreed a deal to buy Dublin-based OpenJaw Technologies for $41.2 million.
In a statement GuestLogix said the agreement, subject to various performance criteria, represents 1.8 times OpenJaw’s revenue for the nine months ending September 30.
The transaction is expected to close on 22 December 2014, or if not, then by no later than 22 January 2015.
Brett Proud, president and chief executive of GuestLogix, said: “With industry experts forecasting ancillary revenue in the airline industry alone to grow by an additional $130 billion by the year 2020, we recognise that there is an insatiable need for a technology platform designed to unilaterally support ancillary revenue initiatives across a travel company’s entire operation.
“The fusion of GuestLogix’ talent and best-in-class technology with the exceptional counterparts that reside within OpenJaw, introduces the industry’s first comprehensive ancillary revenue and retailing platform that will support all stages of the travel journey. This transaction puts us on an elevated growth trajectory and we are proud to announce this transaction as part of the Canadian technology sector.”
OpenJaw will add more than 30 international travel brands to GuestLogix’ customer base, including major Four Seasons Hotels & Resorts, Aeroplan, British Airways, Avis Budget Group Europe, and voyages-SNCF.com.
Kieron Branagan, chief executive of OpenJaw Technologies, said: “Like GuestLogix, OpenJaw’s core mission is to enable our customers to become better, more profitable retailers.
“The OpenJaw t-Retail Platform has transformed the way travel products are merchandised online, and it is used by some of the world’s leading travel brands to further innovate and drive business success.
“The OpenJaw team has the exciting opportunity to expand our ability to increase retailing performance within all travel verticals as we become an integrated part of GuestLogix.”
The OpenJaw t-Retail Platform provides advanced web-based merchandising solutions to travel companies to improve online retailing capabilities through booking engines and other travel channels.
GuestLogix provides retail and payment technology for travel operators used on board aircraft or other modes of transportation. It also provides its solutions through self-service kiosk systems, mobile solutions and via staff in airport lounges.