More big money moves in the world of online travel agencies with news that Spanish giant eDreams has changed ownership in a deal for around Euro 250 million-300 million.
A majority stake in the Barcelona-based OTA was sold yesterday by US private equity firm TA Associates to UK-based counterpart Permira.
The fee was not disclosed, but the Financial Times estimates the transaction was worth up to Euro 300 million, almost double the Euro 153 million TA paid for the business in 2006 from a group of venture capital firms.
Permira is supposedly also in the hunt for other, smaller online travel businesses in Europe.
eDreams launched in 1999 in Spain under the stewardship of Javier Pérez-Tenessa and James Otis Hare, and has since expanded into 14 other markets around the continent. Pérez-Tenessa is the current managing director.
Officials say:
"The company’s growth prospects are underpinned by relatively low levels of online penetration in core markets, potential for further geographic expansion and further moves into non-flight business areas."
The deal comes just a day after Indian online travel agency MakeMyTrip announced its intention to seek an IPO on the Nasdaq stock exchange, a move it hopes will raise around $100 million for international expansion and acquisitions if its own.