Datalex in digital deal with Brazilian firm Multiplus
Shares in Irish travel software firm Datalex rose by almost 6pc to €2.85 on the Irish Stock Exchange yesterday, after the company announced an agreement with Multiplus, a Brazilian-based loyalty network.
The agreement will see Datalex deliver its digital commerce platform for airline and travel products to support the Multiplus loyalty-sector business.
Multiplus has over 19 million members who can accrue and redeem loyalty points from more than 300 partner retailers.
It will use Datalex's platform to deliver a more synchronised and personalised experience across all channels including online and mobile. It will also enable improved data collection and intelligence gathering. Datalex CEO Aidan Brogan described Multiplus as a "major player" in the loyalty space, adding: "This multi-year, multi-million-dollar deal opens up the global loyalty sector for Datalex."
Davy analysts said the deal opens up another credible growth avenue for Datalex. "Its track record of signing direct airline customers for its digital commerce platform, as well as its ability to leverage partners like [Chinese multinational] to penetrate new markets, is a source of confidence for Datalex's prospects in the loyalty space," said analyst Ross Harvey.
Multiplus' partners include airlines in the Oneworld Alliance, Booking.com and Airbnb.
The deal was initially announced at the time of Datalex's full-year results on March 23, but the identity of the customer was not released.
Last year Datalex, whose clients include airlines such as Aer Lingus, Lufthansa, JetBlue and Virgin Australia, reported a 31pc jump in profits to $7.1m (€5.7m) as the firm benefited from increased airline business.
Revenue at the firm, in which billionaire financier Dermot Desmond is a major shareholder, was 15pc higher at $64m (€51.8m). Adjusted earnings before interest, tax, depreciation and amortisation (ebitda) - Datalex's most important financial metric - was 16pc higher at $14.2m (€11.4m). The company's annual report for 2017 also showed that total executive pay last year soared to $1.7m from just under $1.3m in 2016.