Guestlogix to acquire OpenJaw for $41.2-million (U.S.) $GXI

 
2014-12-02 15:26 ET - News Release

Mr. Brett Proud reports

GUESTLOGIX ANNOUNCES AGREEMENT TO ACQUIRE DUBLIN-BASED TRAVEL TECHNOLOGY FIRM OPENJAW TECHNOLOGIES LIMITED

Guestlogix Inc. has entered into a definitive agreement under which the company will acquire Dublin-based travel retailing technology firm OpenJaw Technologies Ltd., for a combination of cash and shares issued to the vendors for total transaction value of $41.2-million (U.S.), plus performance considerations by way of company securities and adjustments for OpenJaw's cash balance. The transaction value represents approximately 1.8 times OpenJaw's annualized revenue for the nine months ending Sept. 30, 2014. The transaction is expected to close on Dec. 22, 2014, but in any event, no later than Jan. 22, 2015.
Transaction Highlights

• Acquisition of OpenJaw Technologies Limited for US$41.2 million plus certain adjustments
• Highly strategic acquisition enhances GuestLogix’ existing retail platform with best-in-breed web-based travel merchandising software used by global travel companies
• Complementary technology platform broadens ancillary revenue-focused service offerings available to current and prospective customers
• Extends reach within the travel industry across all touch points (home, transfer, airport, onboard, hotel and elsewhere in destination) and all major verticals (airline, rail, bus, ferry, hotel, loyalty, online travel agency and car rental)
• Expands customer base to include premier Canadian brands such as Four Seasons Hotels & Resorts, Aeroplan, and AIR MILES / Loyalty One
• Accelerates transformation of GuestLogix into a software-centric solutions provider focused on high margin, recurring revenue
• GuestLogix’ global presence is extended with offices in Dublin and Galway (Ireland), Madrid (Spain) and Kraków (Poland)
• Increases pro forma revenue and adjusted EBITDA by 64% and 251%, respectively, for nine months ending September 30, 2014
• Transaction expected to be immediately accretive on all key metrics including revenue, EBITDA and operating cash flow

OpenJaw will add more than 30 international travel brands to Guestlogix's customer base, including major Canadian travel brands Four Seasons Hotels & Resorts, Aeroplan and Air Miles in addition to British Airways, Avis Budget Group Europe and voyages-SNCF. The OpenJaw t-retail platform provides advanced Web-based merchandising solutions to travel companies that are intent on improving on-line retailing capabilities through booking engines and other travel-related channels. OpenJaw has long-term customer agreements in a wide variety of travel verticals including airlines, high-speed ferries, on-line travel agencies, loyalty programs, hotels and car rental companies.
 
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