Irish Travel Software Firm Datalex Extends Debt Maturity
According to The Irish Independent, Datalex has secured an extension on the maturity of €11.3 million in loans provided by Dermot Desmond.
The Irish travel software firm is currently working on a plan to raise additional equity.
Datalex has suffered as a result of the decrease in air travel as a result of COVID-19, having worked closely with airlines such as Aer Lingus, JetBlue, and Air China pre-pandemic.
The group sells software to these groups that generate additional revenue from customers through ancillary products.
The group's chief executive, Sean Corkery, and the chief financial officer, Niall O’Sullivan, declined to comment on the logistics of how much equity Datalex hopes to raise or when it will do so.
However, they appeared confident that their efforts will be sufficient to clear the loans given to the company by Desmond's Tireragh vehicle.
Looking forward, the group believes the funding will also help strengthen its balance sheet by providing funds to help it push ahead with additional product development.
It is estimated that the target for the additional funds is likely to total more than €20 million.
Both executives have met with investors and will continue with the process of generating additional support over the next number of weeks.
Speaking to The Irish Independent, O'Sullivan said, "The key step, talking to investors, was getting the report out."
O'Sullivan appeared buoyant, adding, "Sean and I have a series of meetings with investors over the next couple of weeks."
The group will be hoping for a huge uptake in air travel once consumers are allowed to do so in the coming months, with Corkery revealing that airlines are looking at digital products "as part of their comeback strategy".
Elsewhere, Datalex is planning to vacate its long-time headquarters at the Eastpoint business park in favour of smaller premises in Dublin’s city centre.
© 2021 Hospitality Ireland – your source for the latest industry news. Article by Conor Farrelly. Click subscribe to sign up for the Hospitality Ireland print edition.