Amadeus
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Business description
Amadeus is a global leader in transaction processing and technology for the travel and tourism industry. It has four main business lines: (i) it is one of the two largest global distribution systems (GDS), connecting travel services suppliers, such as airlines and hotels, with travel agents and end customers; (ii) its Altéa business unit offers IT outsourcing solutions for airlines; (iii) its e-commerce business unit supports online travel technology and corporate travel management solutions; and (iv) it owns a majority stake in Opodo, the online travel agent.
Cinven strategy
Amadeus was formed by four airlines in 1987. Cinven's Business Services sector team first identified an opportunity to acquire the company in 2002. Although stock exchange listed, it was controlled by three of the original airline founders. They wished to remain involved but wanted to realise value from their holdings. The company needed a stable shareholder that would back a significant transformation of the business, particularly in developing Altéa, and that had the ability to execute an industry consolidation strategy. Cinven put forward an ownership solution that met all parties' requirements and acquired the company in 2005. Since then, Cinven has worked with the company's management team to improve the GDS business, attract more airlines to the Altéa IT outsourcing business and reduce operational costs.
For more information, see the Amadeus case study in 'Sector Expertise'.
