Momondo Group has received 80 million pounds in funding from Great Hill Partners. Arma Partners advised Momondo on the transaction. Based in London, Copenhagen and Boston, Momondo is a online travel search firm.
Momondo Group (MGL), the pioneering online travel search company which operates in more than 30 countries worldwide, today announces that it has accepted an £80m cash investment from Boston-based private equity fund, Great Hill Partners (GHP), valuing it at more than £132 million.
Following the transaction, GHP will own a majority stake in the business. The existing senior management team will stay in place, with Hugo Burge remaining as CEO – and retaining a significant minority stake in MGL.
The investment will enable Momondo to further focus on growing the business and more rapidly capitalise on the double-digit growth rates in the travel meta market. With access to this additional funding, Momondo Group sees a significant opportunity to build on its international growth plans, to continue developing its metasearch model for mobile, and to expand its global footprint into new and emerging markets worldwide.
Momondo Group has seen explosive international growth, with more than 85% of group revenues now generated outside the UK, driven by a host of new launches including new country-specific sites in China, South Africa, Brazil, Canada and Australia.
The company also has a strong product pipeline. The momondo flight search app is already one of the most popular travel apps for iOS and Android – and the Group is also currently rolling out its Cheapflights meta app in selected territories and markets around the world.
Momondo Group CEO Hugo Burge said: “As a business, Momondo Group has expanded rapidly over the last two years and is well-positioned to capitalise on the growth in the meta travel sector. We received expressions of interest from a wide range of high-calibre corporate and private equity investors. After a robust process we are pleased to be working closely with an investor who understands our culture and shares our vision – in a partnership which we believe represents the best outcome for our diverse range of stakeholders and investors.
“This is a strong vote of confidence in Momondo Group, its business strategy and management team – from an experienced and well-respected private equity firm. We look forward to working with Great Hill in the months and years ahead, as we realise our shared vision to bring the portfolio of Momondo Group brands and products to an even wider audience of consumers, helping them to make better-informed travel decisions – and help ‘open our world’. I look forward to the next chapter in our journey and the huge opportunity ahead.”
Michael Kumin, Managing Partner at Great Hill added: “Momondo Group has built one of the most dynamic companies in the global online travel market, a high-growth sector with substantial opportunity ahead. We are excited to partner with Hugo and the entire Momondo management team to extend the Company’s market leadership globally through continued product innovation and further international expansion.”
Arma Partners acted as advisors to MGL on the transaction.
About Momondo Group:
Momondo Group is an online travel media and technology company that is driven by the belief that an open world is a better world. The group now serves travel search and inspiration to over 17.5 million visitors a month – plus 7 million travel newsletter subscribers – via its Cheapflights www.cheapflights.co.uk/) and momondo (www.momondo.com) brands.
Skygate began the sourcing of complex air-travel data in 1992, whilst Cheapflights pioneered the online comparison of flight deals for users in 1996 and momondo launched meta-search in the Nordic countries from 2006.
The Group has offices in London, Copenhagen and Boston, with a consumer base across more than 30 core international markets and engaged travellers, explorers and holiday-makers all over the world.
About Great Hill Partners
Great Hill Partners is a Boston-based private equity firm that manages more than $3 billion in capital to finance the expansion, recapitalization or acquisition of growth companies in a wide range of sectors within the Internet, business and consumer services, healthcare, media, communications and software industries. Great Hill has been one of the most active Internet/e-commerce investors with current and former portfolio companies including, among many others: Wayfair (NYSE:W), the leading e-commerce company in the home furnishings and décor market; and BuscaPé, the largest private e-commerce platform in Latin America, sold to Naspers in 2009.