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Navtech’s acquisition of European Aeronautical Group creates one of the world's leading companies for commercial aviation dispatch, charting and crew
planning products.
Waterloo, ON and Stockholm, Nov. 22, 2005:
Navtech, Inc. (OTCBB: NAVH), a leading
international provider of flight operations software, today announced the acquisition of
European Aeronautical Group AB (EAG) from the SAS Group AB for SEK 162 million
(approximately $20 million US), with an additional consideration conditional on certain business
performance measures. The acquisition provides Navtech with aeronautical charting and
navigational data solution sets and substantially increases Navtech's European customer base.
"Today's acquisition is a significant step toward Navtech's strategic goal of becoming a
premiere supplier of integrated flight operations solutions to airlines around the world," said
Navtech, Inc. President and CEO David Strucke. "This enhances our position as one of the
world's leading flight operations management providers with a tremendous airline customer
base and one of the most comprehensive product portfolios."
EAG's fiscal 2004 revenues were approximately SEK 194 million ($23.8 million US) and
Navtech's fiscal 2004 revenues were $7.9 million US. Strucke says the combined product
scope and market presence of the two organizations are highly complementary, and provides
Navtech with a critical mass in the North American and European markets, as well as a growing
presence in Asia.
"Today's announcement fits with our strategy to focus on our core business," said Jörgen
Lindegaard, President and CEO of the SAS Group. "We have been impressed with Navtech
and are looking forward to building a long-term, customer relationship with them."
With the acquisition, Navtech now services more than 200 airlines around the world, including
SAS, British Airways, Delta Air Lines, Air Canada, Air Asia, EVA Airways and JetBlue Airways.
"Many airlines have expressed an interest in turning to one provider for integrated flight
operations systems and we now have one of the most comprehensive and competitive
offerings," adds Strucke. "Superior customer service, combined with industry leading solutions,
has been a key factor in building our business. We are committed to delivering that same high
level of service to our airline partners. It's how we've grown the business even during periods of
airline industry volatility."
Navtech's integrated flight operations solutions are critical to the daily flight operations of
commercial passenger and cargo air carriers, helping airlines to increase safety, maximize
efficiency, and reduce costs. The company's dispatch solutions provide advanced aeronautical
charts, navigational data, and optimized flight paths that ensure compliance with complex
national and international safety regulations. Navtech's crew planning software builds and
manages schedules that minimize costs and increase employee satisfaction and retention
while complying with collective agreements and government regulations. With the acquisition,
Navtech believes it is well positioned to enter the expanding Electronic Flight Bag (EFB)
market.
The financing for the transaction was provided by ABRY Partners of Boston, Cambridge
Information Group (CIG) of Bethesda, MD and Externalis of Brussels, Belgium. ABRY provided
subordinated debt to Navtech, Inc.
“We see great strategic value in bringing these two companies together, both for the market and as a business transaction," says John Hunt, partner, ABRY Partners. "We are delighted to assist in making this happen.”
ABRY Partners is one of the oldest and largest private equity funds in North America investing exclusively in the media, communications and information industries. ABRY has more than $7.0 billion of assets under management and since 1989 has completed more than $18.0 billion of leveraged transactions in the media, communications and information industries.
Cambridge Information Group (CIG) is a privately owned group of information services and publishing companies and educational institutions located around the world. CIG is the parent company to CSA, R.R. Bowker, RefWorks, and Corporate Educational Services, owner of the Sotheby's Institute of Art.
About EAG
European Aeronautical Group is a wholly owned subsidiary of the SAS Group with approximately 155 employees and operations in Sweden and the U.K. The Group produces advanced aeronautical documentation and systems for the aviation industry. Its product line includes different versions of aeronautical and flight navigation documentation and flight and route planning for various systems.
About the SAS Group
SAS AB is the Nordic regions largest listed airline and travel group and offers air transport and related services from its base in the northern Europe. Scandinavian Airlines provides services within Scandinavia, to/from Europe, North America and Asia. Scandinavian Airlines is a founder member of the world's largest global airline alliance – Star AllianceTM. The Group also includes the airlines Spanair, Widerøe's Flyveselskap and Blue1 and the partly owned airlines airBaltic and Estonian Air. The Group's business areas Airline Support Businesses and Airline Related Businesses include companies that support the airline operations. The Group also includes hotel operations with Rezidor SAS Hospitality.
About Navtech, Inc.
Navtech creates and supports superior flight operations software for airlines. Navtech's software provides a competitive edge to airlines by facilitating significant cost savings in fuel consumption and crew planning, two areas that represent a majority of an airline's variable operating expenditures. With more than 200 airline customers around the world, Navtech's software directly supports millions of flights around the globe each year. Navtech has a product portfolio that includes charting, navigational data, flight planning, crew planning, runway analysis, and weight & balance systems. Navtech has more than 250 employees with offices in the United States, Canada, Sweden, the United Kingdom and Singapore.
For further information please contact:
Navtech, Inc.
Gordon Heard
Chief Financial Officer
Tel: +1 519 747 1170 x288
Fax: +1 519 747 5282
gheard@navtechinc.com
www.navtechinc.com
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