ProSiebenSat.1 Group has sold Swedish-based Etraveli to CVC Capital Partners and is reviewing the future of its other travel businesses.
The German broadcaster has taken the first step in a U-turn in its diversification into the online travel retail business. The group already announced in February that it was reviewing the future of these activities and said in May that there was “broad interest” from potential investors.
ProSiebenSat.1 Group said that it is selling all its shares in Etraveli Holding AB to CVC Capital Partners. The price was not disclosed but the travel company was valued at €508 million. The sale is subject to approval by the responsible cartel authorities.
Etraveli, based in Uppsala, Sweden, is an online travel agency (OTA) for flights and operates with the Gotogate, Supersaver and Seat24 brands. In addition, Etraveli also operates two flight comparison portals in Sweden.
Lorne Somerville, Partner and Head of TMT at CVC, said: “The online travel sector is dynamic and fast-growing, and Etraveli is a clear front-runner due to its data-driven approach and highly scalable business model. We look forward to bringing the sector and wider CVC network together with Etraveli’s excellent management team to transform the company into a truly global platform.”
The German group said that Etraveli has significantly increased its revenues and earnings since its acquisition in November 2015 but did not disclose these. In addition, the company’s value (based on an enterprise value of €508 million) more than doubled within this period. The ProSiebenSat.1 Group acquired Etraveli with an enterprise valuation of €235 million.
The German broadcaster explained that with CVC Capital Partners, Etraveli now has a strategic financial investor on board to drive the next stage of its international expansion jointly with the company’s current management team. The joint growth strategy in recent years has focused on the internationalisation of Etraveli, which now operates in around 50 countries.
At the same time, ProSiebenSat.1 will continue the review process for the remainder of the online travel business (especially OTA Weg.de and dynamic tour operator Tropo) in its Travel 7 unit. Further details about the future of the travel businesses are expected at the group’s Capital Markets Day (CMD) on December 6th.
ProSiebenSat.1 said it intends to reinvest the proceeds from the sale of Etraveli mainly in the group’s further growth.
