Amadeus agrees to $5.7 billion buy-out
Worldspan owners have lost out on their bid, as Amadeus confirmed it has agreed to a leveraged buy-out by BC Partners and Cinven, managers of two of Europe’s largest buyout funds.
The main airline shareholders in Amadeus – Air France, Lufthansa and Iberia – have selected the two financial institutions as preferred bidders for the company at a price of euros 7.35 per share. The takeover would rank as one of Europe’s biggest acquisitions by a buyout firm.
Subject to final terms to be agreed, all shareholders will be offered €7.35 per class A share, with the airlines retaining some of their stakes. The aim is to de-list the Madrid-based GDS from the stock market, with the three airlines still retaining an interest in the business.
The airline owners are betting that the buyout firms will be more effective in raising earnings, as they continue to cut costs and selling assets to reduce debt after the adverse effects of SARS, 9-11, Iraq war, and rising oil prices.
Fierce competition between as many as 12 private equity firms finally came down to the offer that best matched the airlines’ aspirations to maintain managerial influence, reported the Financial Times.
Cinven and BC Partners will probably “expand Amadeus with acquisitions and then cut costs and sell out,” said Chris Davison, a buyout industry analyst at Almeida Capital.
Amadeus sells services to 140 airlines in 210 countries. It recently expanded its internet holdings by acquiring Opodo, Europe’s equivalent to Orbitz.
Report by Charles Kao
Charles Kao
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Skyscanner reveals major travel trends 2026 at ITB Asia
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
In Italy, the Meloni government congratulates itself for its tourism achievements