TA Associates, a leading buyout and private equity firm, today
announced the completion of a EUR 153 million leveraged buyout of
Spain-based eDreams, the fastest growing online travel company in
Europe. The LBO provides for the purchase by TA and eDreams' current
management team of 100 percent of the shares of the company from
shareholders, including DCM - Doll Capital Management, Apax Partners,
Atlas Venture and 3i Group, among others.
Founded in 1999, eDreams focuses on offering the best selection
and prices for flights, hotels and vacation packages to customers in
Spain, Italy and France through the use of innovative search,
packaging and booking engines via the Internet. eDreams is the number
one online travel agency, in terms of market share, in Southern
Europe. Over six million customers have purchased their hotels,
flights and vacations packages with eDreams since inception. In 2006,
eDreams sales are expected to exceed EUR 300 million. The company is
headquartered in Barcelona, Spain.
"We are pleased to make this significant investment in eDreams,"
said Christian Grunwald, a Vice President at TA Associates, who will
join the company's board of directors. "In addition to its leading
market position, eDreams has very strong financial performance, a
superior platform that allows it to offer unique products and services
and lower ticket prices than competitors, and a solid and experienced
management team. We look forward to working closely with them to
further build value in eDreams through organic growth and
international expansion."
"We are very pleased to team with an experienced growth private
equity firm like TA Associates," said Javier Perez-Tenessa, Co-founder
and CEO of eDreams. "TA has a long history of successful investments
in the consumer and business services sectors, and we will leverage
this institutional knowledge as we continue to increase eDreams'
leadership in the Southern European market versus our most immediate
competitors."
Currently, 15 percent of travel bookings are made online in the
Southern European market. This figure is expected to reach more than
30 percent by 2009. Given the sharp increase in penetration, the
online travel markets in Spain and Italy are expected to grow
strongly.
"The Southern European retail travel market is significantly
underpenetrated in terms of online purchasing," said Ajit Nedungadi,
Director of TA Associates Ltd., who will also join eDreams' board of
directors. "eDreams will benefit as its target markets catch up with
Northern Europe and the U.S. in the proportion of travel purchased
online. We expect that the company will continue to gain market share
and defend its leading position."
"By completing the largest ever e-commerce LBO in Southern Europe,
eDreams gains access to the resources of top-tier financial
institutions in order to fuel both organic growth and acquisitions,"
said James Hare, co-founder and Italy MD for eDreams.
TA Associates, which has more than 38 years of experience
investing in profitable, growth companies, has been an active investor
in the European markets with numerous investments, including Drive
Assist UK Ltd., GlobeOp Financial Services, IntercontinentalExchange,
ION Trading Group, Sophos Plc and Tempur-Pedic International. Other
investments include AIM Management Group (AMVESCAP), Biogen, Datek
Online Holdings (Ameritrade Holding Corporation), Federal Express,
Finisar Corporation and McAfee Associates. The firm opened its London
office in 2003 and is continuing to expand its investment efforts in
Europe.
Ashurst and Goodwin Procter served as legal counsel to TA
Associates. Freshfields and Garrigues provided legal services to
eDreams, and Morgan Stanley provided financial advisory services.
Fortis provided senior debt for the transaction.
eDreams
eDreams, headquartered in Barcelona with offices in Spain and
Italy, has experienced in recent years the most significant growth of
any travel or e-commerce company in Europe. Focused on offering the
largest market selection of flights, hotels and vacation packages,
eDreams offers clients the best prices to meet their travel needs via
the web at www.edreams.es, www.edreams.it, www.edreams.com, and
www.edreams.fr. All of these services offer customers comfort and
flexibility thanks to an innovative search engine technology that
allows them to compare prices and reserve trips via the Internet.
TA Associates
Founded in 1968, TA Associates is one of the largest and most
experienced private equity firms. With offices in Boston, Menlo Park
and London, the firm manages $10 billion in capital and has invested
in more than 370 companies. TA Associates provides growth equity
capital, leveraged recapitalization and management buyout financing
primarily for technology, consumer, financial services, business
services and healthcare businesses. More information about TA
Associates can be found at www.ta.com.
Safe harbor statement under the U.S. Private Securities Litigation
Reform Act of 1995: Statements made in connection with this release
which are not historical fact, such as forward-looking statements
concerning future financial performance and growth, involve risk and
uncertainties. Such statements are subject to various factors that
could cause actual results to differ materially from those set forth
in the forward-looking statements. Any forward-looking statements
represent the best judgment of TA Associates and eDreams as of the
date of this release. TA Associates and eDreams disclaim any intent or
obligation to update any forward-looking statements.
This document is approved for issue in the UK by TA Associates
Ltd., which is regulated by the FSA.
