Gentrack ups airport product list

Gentrack Group wants to double earnings from its airport software business by 2019 after buying controlling stakes in two European companies for some $19.8 million.

The utilities software developer will pay 41 million Danish krone, or $8.4m, for 79.8 per cent of Denmarkbased Blip Systems and € 7.5m, or $11.4m, for 75 per cent of Malta-based CA Plus, the company said.

Both acquisitions have three-year earn-out agreements for the remaining stakes, and will be funded through Gentrack’s debt facilities.

Blip develops software to measure passenger flows, queue prediction and capacity forecasting, with 26 airport customers, while CA Plus has built software to manage, optimise and audit airport retail concession revenue, with six airport customers.

Gentrack said it expected the acquisitions would increase earnings before interest, tax, depreciation and amortisation to more than $5m in the year ending September 30, 2019, from $2.7m in the 2016 year.

“Blip and CA Plus both have multiple airport customers in common with [Gentrack’s] Airport 20/20 and this has facilitated due diligence,” said company secretary Jon Kershaw.

“Both solutions can now be integrated with Airport 20/20 to provide . . . a unique product range for airport operators.”

The deal comes less than a month after Gentrack spent $79m to buy Junifer Systems, the UK customer information and billing system provider for energy retailers.

Gentrack is due to report first-half earnings late next month and has said it expected sales to rise about 20 per cent as new projects come on stream.

The company’s shares closed up 2c yesterday at $4.40.