Amadeus to buy French biometrics firm Idemia Public Security

Spanish travel technology firm Amadeus has ⁠announced a plan to acquire French biometrics company Idemia Public Security, which is owned by Advent International, for 1.2 billion euros ($1.97 billion) ‌in an all-cash deal.

Amadeus, which operates ‌the ‌world's largest travel booking system, ‌described the acquisition as immediately ⁠earnings-accretive, expecting it to accelerate its growth in airports and border checkpoints while enhancing the firm's global presence.

The combination of the two ​businesses should increase Amadeus' total addressable market, or total revenue opportunity, to ⁠50 billion euros from 41 billion, it said.

"Potentially a good deal, and a fit with Amadeus' portfolio," Bernstein analysts said in a note to investors, adding that the acquisition will likely reduce the probability of share buybacks for the second half of the year.

The ⁠closing of the deal is expected in mid-2027 and it ​includes a potential earn-out of up to 150 ‌million euros ⁠on top of the price. 

Amadeus expected the acquisition to result in high single-digit revenue growth with expanding operating margins ‌and provide annual cost synergies of 50 million euros in the medium term.

IPS employs around 3300 people worldwide and serves more than ​600 public and private sector customers.

Aside from passenger processing, IPS works with other regulated environments such as access ‌control and ⁠government-grade biometric identification ​and data solutions.