Navigant International today confirmed that its Aqua Software Products subsidiary late last month bought from Germany's I:FAO the technology, facilities and people associated with the Powertrip corporate online booking tool. I:FAO had purchased the software two years ago from Xtra On-Line
(BTN June 25, 2001) to pursue the U.S. middle market.
A Navigant spokesperson was not available immediately for further comment, but analysts speculated that the technology will be used to bolster Navigant's position vis-a-vis the Big Three online agencies. "I would look at it as Navigant saying, 'Hey, Expedia, if you're going to get into this business and attack the lightly managed space, then we're going to get into that space as well,' " said Ian Corydon, who follows Navigant for B. Riley & Co. "I think they're fighting back."
"It's definitely on the same page of the direction they have been headed," said Sidoti & Co.'s David Gold. "The plan was to roll out a lightly managed product to compete."
Navigant CEO Ed Adams in recent months has said online competitors are attracting some lightly managed customers and that Navigant would respond with a bundled solution. Meanwhile, the alignment of the Powertrip product under the Aqua umbrella signals the mega would like to sell Powertrip and related services to other agencies. Powertrip also is more likely to retain existing clients who use agencies other than Navigant if it is sold as an Aqua rather than a Navigant product.
The sale allows I:FAO, which has been disappointed with its U.S. operations, to focus mainly on multinational clients who use its Cytric booking tool for heavy travel management. An I:FAO official said a takeover bid, announced last month by TFG Venture Capital in Germany, has not happened.