German broadcaster ProSiebenSat.1 is selling Sweden-based Etraveli, with an enterprise value of 508 million euros (445.3 million pounds), to CVC Capital Partners as part of a strategic review of its online travel businesses.
The deal values the online travel agency, which operates with brands Gotogate, Supersaver and Seat24, at around 14 times core profit, ProSieben said in a statement on Tuesday.
ProSieben had announced in February that it was looking into where to go with it travel business, which includes Internet portals such as event agency mydays and travel booking site weg.de and accounts for more than a third of digital revenues at the company.
Critics had previously said ProSieben lacked a clear leader in an e-commerce portfolio which they argued was too diversified, with activities in travel, price comparison, online dating and even sex toys.
ProSieben said it would continue the review of its remaining online travel business, especially travel booking portals weg.de and tropo.
It aims to use proceeds from the sale of Etraveli to fund further growth, make bolt-on acquisitions in the Digital Entertainment and Commerce business and acquire minority stakes in companies already in its portfolio.
The deconsolidation of Etraveli, expected in the third quarter, will force ProSieben to adjust its 2018 targets, the group said, adding it would provide details on the revision at its Capital Markets Day on Dec. 6.
So far, the company has targeted 2018 sales of 4.5 billion euros and earnings before interest, tax, depreciation and amortization (EBITDA) of 1.15 billion.