Travelport yesterday completed its acquisition of global distribution system competitor Worldspan, following European Commission approval.
Following a detailed review of the acquisition, the European Commission yesterday concluded that the deal is "unlikely to result in unilateral price increases by the merged firm," while also noting that reducing the number of GDSs in the market from four to three would not yield "coordinated behavior" among competitors. Travelport's Galileo is the second-largest GDS in the European Union, a ranking maintained through the acquisition of Worldspan, the fourth largest. Amadeus would remain the largest GDS in the European Union, with Sabre holding its position as the third largest.
The U.S. Federal Trade Commission in July also gave its blessing to the Travelport-Worldspan deal, which the companies announced in December. Travelport said the $1.4 billion acquisition would enable the GDSs to integrate technological infrastructures and sales forces
(BTNonline, Dec. 7, 2006).
"Galileo will be enhanced by Worldspan's online distribution technology platform, while Worldspan will benefit from Galileo's expanded supplier base and expansive content," president and CEO of the Travelport GDS division Gordon Wilson said in a statement.