Even though Datalex is a competitor to Amadeus in the internet booking engine space, I have occassionally written some positive things about the company. Unfortunately today is a different story, as you can see below:
Three weeks ago Flight Centre terminated the contract, and began breach of contract proceedings against Datalex in the Queensland Supreme Court two days later. It is suing for $US5.3 million it paid to Datalex, and a further $9.35 million in ”wasted expenditure” Flight Centre incurred.
And that is not the only bad news for Datalex, as you can see from this story that was published a few days ago.
Shares tanked over 8pc yesterday to close down 2 cent at 17 cent, valuing the company at just over €12m. Investors were concerned at the outlook, which is significantly worse than analysts and the company itself had envisaged.
The Sabre purchase of EB2 earlier this year was something I didn’t see coming, but I wonder if Datalex was under consideration for that transaction, and if not, whether they are now maybe wishing they were?