European online travel agency Opodo has finally been sold by Amadeus today in a deal worth Euro 450 million to AXA Private Equity and Permira Funds.
The sale ends a nine month search for a buyer (although only officially since October 2010) after Amadeus confirmed it was considering its options for the business and no longer considered Opodo a strategic asset.
Amadeus says in a statement:
"At the time of closure of the transaction and after the implementation of the commercial agreements it is estimated that the net sum to be received by Amadeus including the costs of the operation, adjusting for the cash reserves and working capital position of Opodo, will be a total sum of approximately Euro 500 million."
No details confirmed as to any structural changes to the business as a result of the sale, a deal which Amadeus says is expected to be scrutinised by competition regulators at the European Commission.
Perhaps one of the interesting elements behind the deal, which will get lost in the headlines, is the signing of an agreement for Amadeus to supply Opodo, eDreams and GoVoyages (the latter two both owned by Permira Funds and AXA respectively) with GDS services for ten years.
In fact, the finance houses between them now have control of a sizeable chunk of the OTA market in Europe.
Rumours of the deal closing have circulated for a number of weeks as the more bizarre suggestions of likely suitors started to fall by the wayside and a finance house or conglomerate emerged as the most likely contender.
At one point in the process the rumour mill sped out of control when even Google was suggested by some as an interested party.
Expedia was linked again in the Near Year, although eventual winner GoVoyages stated in September 2010 - even before Amadeus confirmed its intentions - that it would be in the hunt for the ten year old business.
Milestones for Opodo so far include:
- August 2000 - Opodo was created as a joint venture between nine European airlines including Aer Lingus, Air France, Alitalia, Austrian Airlines, British Airways, Finnair, Iberia, KLM and Lufthansa.
- Nov 2001/April 2002 - First international expansion: business rolled-out in Germany, UK and France.
- 2004 - Amadeus takes controlling stake of 56%
- 2005 - Second international expansion: operations expanded to cover nine European countries. Amadeus’ stake increased to 75.4% as a result of the acquisition of several online travel agencies across Europe, such as Viviane’s in France, or Travel link in Scandinavia.
- 2007 - Appointment of new CEO Ignacio Martos: consolidation and restructuring of the company, including the appointment of new management. Review of strategy and divestment of non-strategic assets; focus on ensuring efficient operations of core air product. EBITDA breaks-even.
- 2008 - Amadeus stake increases to 99.74% as a result of the decision taken by all airline shareholders (except Air Lingus) to execute put-option rights on Amadeus. AirLingus remains the only minority shareholder as of 2008 with 0.26% and financial rights only. Amadeus can execute a call-option at any time to acquire AirLingus stake.
- 2009 - Amadeus owns 100%: Amadeus stake increased to 100% as a result of the final acquisition of AirLingus' shares.