Datalex Seeks Cash Injection After Debacle on Lufthansa Tech Project
Skift Take
Datalex, which provides tech to help power ticket booking on airline websites, is desperate for good news, which is why the company's words in the next few months should be treated with skepticism. That said, a lowered share price may make the vendor a takeover target.
Datalex, a builder of software for airlines, is facing a financial shortfall after having failed to deliver a new digital commerce platform for Lufthansa Group's airlines on time and under budget.
Datalex now risks a cash crunch, prompted by Lufthansa's haggling over the bill. The German airline group expected the vendor to finish the project in 2018, but the project's first phase has not gone entirely live yet.
On Tuesday, the Dublin company said billionaire Dermot Desmond, who indirectly owns 26.4 percent of the company, may take a larger stake and provide a loan of up to about $6.9 million (€6.1 million).
Even if Desmond helps, the 500-employee company said it may have to have layoffs of an unspecified number of workers and contractors, with a goal of saving up to $10 million (€8.87 million) over the course of the year.
Throughout last year, Datalex had touted its growth. As recently as November, it guided investors that it
