05 December 2014 – Another successful buy-out for an Irish Tech start-up as OpenJaw Technologies sells to Canadian firm Guest-Logix for €33.4m.
OpenJaw Technologies, a Dublin BIC assisted company, provides software to travel companies such as airlines, enabling them to sell other travel products, including hotel rooms and rental cars. Current customers include British Airways, Avis Budget Group Europe and Four Seasons Hotels & Resorts.
In a recent interview with the Irish Independent, OpenJaw chief executive Kieron Branagan spoke about about the companies strategy. “I think the important thing is we become a very significant global player in the online travel space,”
“We extend the geographic reach of the combined company, so we’re in all areas of the world,” he added.
“We enable a complete control of the customer journey, so everything from being able to transact online and book and consume your products like a flight and hotel, on through to onboard the aircraft where people are purchasing food and drinks, digital content, ground transfers.”
OpenJaw’s founders, John McQuillan, Sean MacRoibeaird and John Lambe, are its principal shareholders and they are set for a bumper payday once the transaction is completed.
They founded the firm in 2002 and as well as in Dublin OpenJaw has offices in Galway, Madrid, Krakow and Hong Kong.
GuestLogix describes itself as a provider of “ancillary-focused merchandising, payment and business intelligence technology to airlines and the passenger travel industry.”
Ancillary revenue is revenue that comes from sources other than tickets.
GuestLogix president and chief executive Brett Proud said that “industry experts forecasting ancillary revenue in the airline industry alone to grow by an additional $130bn by the year 2020”.
Mr Proud said therefore “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”.
He added: “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.”
The deal’s value represents approximately 1.8 times OpenJaw’s annualised revenue for the nine months ending September 30.
It is expected to close on December 22, or no later than January 22.
Source: Irish Independent – 4th December 2014