top of page

Technology transition in the M&A deal between Expedia and Egencia

 

A deep dive into Expedia and Egencia's complex global tech transition

 

Expedia, a global travel company, engaged in a divestment with Egencia, a strategic move given the pandemic's impact on the travel industry.  

 

Karumba Consulting was brought in to manage the technology transition and ensure a seamless divestment process. The deal involved not only detangling the technology stacks but also addressing various elements such as virtual and physical hardware, call centres, security systems, and personal devices across the globe. 

 

Problem: 

The main challenge faced by the companies was the need to separate their technology systems smoothly without disrupting business-as-usual operations. The urgency and complexity of this task arose from the accelerated deal closure, as Amex Global Business Travel sought to acquire Egencia's post-pandemic generated business. The secondary challenges included physical and logical data separation, , and the provision of hyper-care for post-implementation support. 

 

Challenge: 

 

Karumba Consulting faced significant challenges in planning the migration due to the complexity of the technology stacks and the timescales. This involved evaluating the extent of platform sharing, creating the technical Transitional Service Agreement (TSA) specifics, and aligning with the accelerated deal closure timeline. 

 

To understand the situation better, critical information was needed, including: 

  • Egencia’s technology stack and how it was integrated into Experia's. 

  • The extent of platform sharing. 

  • What data was to be made available for migration as part of the deal. 

 

Data collection prioritised understanding physical and virtual infrastructure, ownership structures, and what the transitional service agreement (TSA) responsibilities for support during the transition period would be. 

 

Analysis:

Critical factors influencing the situation included data security, system compatibility, and the need for comprehensive analysis before and after the deal. The analysis involved both quantitative and qualitative methods, such as data usage analysis, vulnerability assessments, and automated testing. 

 

Assumptions included the effectiveness of security measures, successful data replication, and adherence to regulatory requirements—validation involved implementing processes to secure data, audit trails, and ongoing security analyses. 

 

Alternative solutions:

Various strategies were proposed, such as meticulous data separation,  and automated migration tools. Pros and cons were assessed for each option, considering factors like protecting business availability, cybersecurity, compliance, and data migration efficiency. 

 

 

Solution:

Based on the analysis, the recommended course of action was a phased approach to technology disentanglement. Confidence stemmed from thorough pre-planning, collaboration with key stakeholders, and a robust security strategy. 

 

The implementation phase demanded a synchronised effort with AMEX GBT and Egencia post-day 1. This involved critical tasks such as conducting a thorough analysis of data hierarchy, , and migrating essential systems, including email routing and domains. Challenges encountered included effectively managing lead time, ensuring seamless global coordination, and obtaining crucial stakeholder buy-in. 

 

Risks identified encompass cybersecurity, technology challenges like ETL elements, compliance issues, and contract-level milestones. Mitigation strategies included maintaining security heirarchies, migrating data to secure platforms, and proactively addressing compliance concerns. 

 

Outcome: 

 

The success of the technology transition was measured through various key indicators, reflecting the comprehensive efforts undertaken by Karumba Consulting and its stakeholders. 

Success measurement: 

  • Tracking tools: The effectiveness of the transition was monitored through the production of specific tracking tools and allowed effective monitoring of progress against plans, highlighting areas of concern for more focused action. 

  • Adherence to TSA exit checklists: Compliance with Transitional Service Agreement (TSA) exit checklists played a crucial role in gauging the success of the technology transition. Ensuring that all outlined tasks and obligations were met within the agreed-upon timeframe showcased the commitment to a smooth post-transition period. 

  • Maintaining relationships during transition: The continuity of relationships during the transition was vital to success. Positive interactions and collaboration between all stakeholders, including AMEX GBT, Egencia, and Expedia, contributed to the long-term success of the integration. 

 

Metrics: 

  • Service provision: The effectiveness of service provision post-transition was a key metric. This involved assessing the quality and reliability of services delivered and ensuring that the integrated technology systems met or exceeded the expectations of all involved parties.

  • Absence of technological debt: The absence of technical debt, indicating a lack of legacy issues or unresolved challenges, served as a critical metric. Ensuring a clean slate regarding technological obligations demonstrated the thoroughness of the transition process. 

 

 

Conclusion:

 

Karumba Consulting played a crucial role in successfully transitioning the technology, ensuring the M&A deal's seamless execution. This was only possible with meticulous planning, stakeholder collaboration, and a comprehensive, experienced approach to address challenges in technology integration during mergers and acquisitions. Based on stakeholder input, adjustments were made to the technology transition process, showcasing a commitment to continuous improvement. This iterative approach allowed for the refinement of strategies, ensuring that lessons learned from the deployment were actively incorporated into subsequent phases. 

 

As you navigate your own challenges and transformations, consider how Karumba's expertise and bespoke solutions can assist in achieving your business objectives. Contact us to explore how our strategies can empower your organisation's success. 

bottom of page