Galileo Goes Uniglobe Trotting

<B> Galileo Goes Uniglobe Trotting</B>

By Mary Ann McNulty

<I>Vancouver</I> - In yet another deal representative of a new strategy toward investing in technology, Galileo International of Rosemont, Ill., on Jan. 13 invested $3.3 million in Uniglobe Travel Online Inc., the publicly traded Internet booking company of Vancouver-based Uniglobe Travel International Inc.

The announcement was favorably received by investors, making UTO one of the five most active stocks on the Vancouver Stock Exchange, with more than 380 trades by midday.

For Galileo, the investment marks its third investment in technology firms in recent months. Late last year, Galileo purchased marketing tape analyzer Shepherd Systems and invested in VIN.net, the automated expense-reporting software vendor, to which it sold its Travelmaster solution.

"We have a strategy in making investments in technology companies. This is consistent with that strategy," said Paul Pucino, senior manager of new ventures for Galileo. "This also allows us to strengthen our relationship with a long-time customer. As a result of this investment, Uniglobe Travel is going to be converting more of their bookings to Apollo."

Uniglobe spokesman Stephen Lewis said the investment in the online venture is separate from agency bookings, though the deal definitely strengths the relationship. Uniglobe Travel currently uses Galileo/Apollo for one-third of its bookings and Amadeus for another third, with the remaining third split between Sabre and Worldspan, he said.

Unlike Sabre, whose Travelocity consumer site some contend competes against travel agents, Galileo does not have a Website. "But a big part of our strategy is to be the booking engine for multiple Websites," Pucino said.

While UTO uses the Galileo database to feed its site, it relies on ITN's booking engine. ITN is one of four alliance partners, along with Microsoft Expedia, Leisure Planet and Autobytel.com.

The focus of UTO's site is strictly leisure, though it would like to offer a site for corporate customers in the future. It also plans to move outside North America--and that's where Galileo's presence in 83 countries will be important, Lewis said.

The Galileo investment brings UTO's total cash infusion to $8.5 million since it was founded in 1995. The site became fully operational by October, when its stock opened at C$3.65 (US$2.37) per share on its first day of trading. It since has risen to more than C$7.

The company raised $1.6 million in its IPO and an additional $5.69 million from Uniglobe's owners, Charlwood International Corp. and the Independent Order of Foresters.

But the Galileo investment represents "our first strategic financial partner," Lewis noted. "The money gives us the financial base to go after our strategic business objectives, to continue our alliance plans to bring more customers to our Website."

Galileo has no prescribed amount of money to invest, Pucino said, but a couple more deals are in the offing.