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Amadeus will buy French biometrics company Idemia Public Security (Idemia Public Security) for $1.4 billion

Spanish travel technology company Amadeus announced on Wednesday that it would acquire French biometrics firm Idemia Public Security, owned by Advent International. The deal will be done in cash and is worth 1.2 billion euro ($1.40 billion).

Amadeus operates the largest travel booking system in the world. The company described the acquisition of the border checkpoints and airports as an immediate earnings-accretive move. They expect it to boost the firm's growth at both the border checkpoints and airports, while also enhancing its global presence.

It said that the combination of "the two businesses" should increase Amadeus total addressable market or revenue opportunity to 50 billion Euros from 41 billion.

Bernstein analysts wrote in a note to investors that this acquisition is "potentially a great deal and fits well with Amadeus portfolio". They also added that it will reduce the likelihood of share buybacks during the second half year.

Amadeus shares fell 0.65% to 48.9 Euros in the morning trade on Wednesday.

The deal is expected to close in mid-2027, and includes an additional potential earning of up 150 million euro on top of the purchase price.

Amadeus anticipated that the acquisition would?result?in high single-digit revenue increases with expanding operating margins and provide annual cost savings of 50 mln euros over the medium term.

IPS has a global workforce of?around 3300 employees and services more than 600 customers in the public and private sectors. IPS is not only involved in passenger processing but also works with other regulated environments, such as government-grade biometric data and identification solutions and access control.

(source: Reuters)