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Creating clear skies: how Navtech Inc., a small Canadian firm, has taken on Europe with a savvy acquisition--a company more than twice its size. Effective communication within its own ranks, a clear understanding of its own business, and a strong due diligence process all made a big difference.

Article Excerpt
In late 2005, a small Waterloo-based company pulled something off that many would think impossible--it bought up a company almost three times its size in a bid to solidify the European market and expand its product set. The acquisition, and subsequent merger of operations in Canada, Sweden and the U.K., offer a useful lesson in how to carefully execute an M & A strategy. Relationships are crucial, as is a remarkable attention to detail.

Matchmaker

Navtech, Inc. is a leading international provider of flight operations software. This software is used to provide airlines with a competitive edge by helping them increase safety, maximize efficiency, and reduce costs. For instance, Navtech's dispatch solutions help optimize flight paths--the flight plan might direct an aircraft to take a longer route rather than a straight line to the destination, but that route would take better advantage of jetstream winds, thus economizing on fuel. The technology also ensures compliance with complex national and international safety regulations.

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Navtech's crew planning software, on the other hand, builds and manages schedules that minimize costs and increase employee satisfaction. The software allows the development of parameters--i.e. seniority, preferred flight plans, and swapping forums--to automate and thus simplify the scheduling process.

Since CEO David Strucke took the helm, Navtech has experienced steady growth over the last few years--remaining profitable 16 quarters in a row. The company had grown throughout the '90s...

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