Investec Australia Limited (Investec) has invested in the Australian-based airport technology firm ICM Airport Technics (ICM), predicting widespread adoption of its ‘auto bag drop’ check-in technology in airports globally at a time when air travel is expected to double within the next 15 years.
The Australian-based company’s self-service bag drop solution is already in use at Qantas domestic terminals in Australia, and has over 100 units installed in 14 terminals globally.
ICM has also recently been awarded mandates from major air transport hubs including Heathrow and Paris’ Charles de Gaulle and Orly airports.
Head of Aviation Finance for Investec in Asia, Sydney based David Phillips, said the investment reinforced the opportunities that Investec is currently seeing in the aviation market.
“By 2026, it is forecast that aviation and related services will contribute around $1 trillion to world GDP,” Mr Phillips said. “we already participate in the aviation sector principally through our aircraft finance business and saw this as an opportunity to take additional exposure by investing in ICM given its market leading technology and its existing strong market position.”
“ICM is at the forefront of the auto bag drop market, and has already made significant improvements to efficiency and customer service at key airport terminals where its technology has been taken up or trialed,” he said.
“We expect auto bag drop technology to become a central part of airport infrastructure as the market transitions to widespread acceptance and adoption.”
The terms of the deal provide for Investec to provide financing capital to assist in new growth opportunities with an option for Investec to convert its financing into a controlling stake in the company.
Mr Phillips said the deal reflected Investec’s unique ability to move quickly and nimbly when opportunities arose in the market which it supported.
“Once we identified the opportunity we moved quickly to accelerate approvals and received strong support from senior management to secure the investment”, he said.
“In addition to opportunities such as this, Investec’s aviation finance business has arranged and executed over $1bn of aircraft financing in the last 12 months alone, using both its strong balance sheet as well as its managed funds business.”