Navtech, a technology company based in Waterloo Region, makes software that solves the huge computational problems inherent to flight. Fuel weight, path, drag, weather – hundreds of externalities need to be understood and modelled for every safe landing. Navtech makes the software that crunches these numbers; they are one of the companies making the miracle of flight routine.
Now, Navtech is joining forces with France’s Airbus, one of the leaders in civil aircraft manufacturing, with 63,000 employees in four countries.
“Airbus is an incredible brand in the marketplace,” said Navtech CEO Mike Hulley. “In their brief history since the early ’70’s they’ve captured about 51 per cent of the market space for aircraft. That’s phenomenal. We’re a young, hungry company as well; lashing the two of us together gives both companies an opportunity to expand into new territory.”
For Airbus, the acquisition seems to represent a path into the flight operations space. Typically, aircraft manufacturers make airplanes and software companies make the tech that enables them to fly safely. By acquiring Navtech — a services-side company with 400 airline customers — Airbus is demonstrating a serious commitment to the technology side of aviation.
“For Navtech,” said Hulley, “it gives us access to their enormous customer base around the globe, and helps us demonstrate that we’re not just a startup. We are a company that has reach, range, and backing to deliver superior products anywhere on Earth. It’s really a win-win.”
Hulley was mum on the details of the deal — still awaiting customary regulatory approvals — but shared the biggest surprise that came up during the acquisition process:
“Just how many synergies existed between the companies. The more due diligence we conducted, the more we saw that the two companies could fit together in a very complementary way, and build off each other. Once the process started it was a no-brainer.”
When asked what the acquisition means for the region, Hulley admits he “doesn’t have all the information yet,” but sincerely believes it represents a major victory.
“It’s going to be big for the region to have a company like Airbus working here. When Airbus came to visit throughout the acquisition process, they’ve noticed the access to really strong engineering and technology folks in this area. Not only did this surprise them, they’re thrilled about it. I think this will be something that continues to grow in the region. It’s going to be really exciting to hang an Airbus sign on the building. I’m very much looking forward to that day.”
Part of his faith in Waterloo Region stems from the fact that Navtech itself has flourished as a result of the ecosystem.
“Over the years Navtech has had unfettered access to really strong talent coming from the University of Waterloo, and many of our employees — especially at the executive range — are home-grown. They’re straight from the university; our chief technical person started here as a co-op student. This whole company has grown up in this region and we’re happy to be one of its success stories. It’s meant a lot to Navtech to be here, and it will mean a lot to Airbus too.”
