Ixigo to Acquire 60% in Spain’s Trenes, Marks Entry to Europe

Travel aggregator Ixigo's board has approved the execution of binding agreements for the acquisition of a 60% stake in Spain's second-largest train booking platform Online Travel Solutions, for 11.70mn euro (over ₹125 crore), reported PTI.

The acquisition of Trenes will enable Ixigo's strategic entry into the Europe. The proposed acquisition will help leverage Ixigo's product, technology and AI leadership in the European OTA market, as Trenes is engaged in the business of providing an online platform for train ticket bookings, primarily catering to the Spanish market, with operations extending to certain other parts of Southern Europe.

"This investment is expected to create meaningful synergies by bringing together Trenes' strong customer base, brand presence, and local operator integrations with Ixigo's AI-led product innovation and technological expertise in solving complex travel use cases at scale ," reported PTI citing a statement issued by Ixigo.

The company also said that it aims to accelerate the Trenes product development, AI reinvention and improve customer experience to unlock new growth opportunities in Europe with this acquisition. Consequent to the acquisition, online travel solutions, SL will become a step-down subsidiary of Ixigo, it stated in a late-night regulatory filing on February 13.

The board of directors of Ixigo also approved the acquisition of a 45.02% stake in Squad As Service, SL, Spain (Sqaas) for a total consideration of 0.45mn euro (over ₹4.83 crore).

The total consideration for both acquisitions includes non-compete fees and authorisation of the signing of definitive agreements, subject to completion of procedural formalities and regulatory requirements in Spain.

After the acquisition, Squad As Service, SL (Sqaas) will become an associate company of Ixigo.

Sqaas is engaged in the business of providing technology-driven solutions, with a focus on artificial intelligence-enabled software and related services.

Europe’s Mobility Push

The rail travel ecosystem in Europe provides digital ticketing platforms with a robust growth runway. According to the European Commission, the Trans-European Transport Network (TEN-T) policy, which aims to improve rail integration across member states, is strengthening the region's cross-border connectivity.

Given that transport is still a significant source of emissions and that rail is one of the least emitting modes, according to a March 2021 report by the European Environment Agency, rail is also important to the European Union's climate strategy.

According to the report by European Travel Commission, consumer demand is inclining toward app-based, integrated travel planning and booking solutions across European destinations, which is encouraging online travel agency expansion.

(With inputs from PTI.)