Spanish multinational technology company Amadeus IT Group, S.A. (ES:AMS) is acquiring biometrics technology specialist Vision-Box for €320 million. Amadeus is one of the largest travel booking and transaction processing solutions providers in the travel and tourism industry. The acquisition will help Amadeus expand into the lucrative biometrics solutions space.
Portugal-based Vision-Box provides border control and other biometrics solutions, such as face-recognition technology across airports, airlines, seaports, and cruise lines. Vision-Box says it has a 30% market share in the global border control industry, with operations across 100 nations.
Here’s How Amadeus and Vision-Box Synergize
Acquiring Vision-Box will enable Amadeus to build an end-to-end digitally integrated ecosystem spanning various aspects, from travel booking to border control and boarding. Vision-Box’s solutions connect all stakeholders across the travel channel through its advanced machine-learning algorithms and easy-to-use interfaces. Vision-Box’s services are highly complementary to Amadeus, and the latter sees immediate benefits for its customers and travelers.
The acquisition remains subject to regulatory approvals and is expected to close in the first half of this year. If approved, 470 of Vision-Box’s employees will join Amadeus. Vision-Box is expected to generate €70 million in revenue and €20 million in normalized EBITDA (earnings before interest, tax, depreciation, and amortization) in Fiscal 2023.
Citing a study by Biometrics Research Group, Amadeus highlighted that the global biometrics sector is expected to grow from $47.8 billion in 2023 to $86.1 billion by 2028. Going by these numbers, Amadeus is optimistic about disrupting the billion-dollar sector by building a robust travel ecosystem.
What is the Price Target for Amadeus?
The Amadeus IT Group, S.A. share price target of €76 implies 16.7% upside potential from current levels. On TipRanks, AMS stock commands a Strong Buy consensus rating based on four unanimous Buys. AMS shares have gained over 12% in the past year.
