TA Associates Selling eDreams to Permira

TA Associates has agreed to sell its majority stake in eDreams Group, a Madrid-based online travel agent and issuer of airline tickets, to Permira.

PRESS RELEASE

A company backed by the Permira Funds has today reached an agreement to become the majority shareholder of the eDreams Group, a market-leading online travel agent (OTA) and issuer of airline tickets. TA Associates, which has been the majority shareholder in eDreams since 2006, will sell its full interest in the holding company of the Group.

eDreams is a leading Online Travel Agency in Spain, Italy and Portugal and has an increasing presence in 15 other countries around the world. It operates a multi-channel marketplace that connects travel suppliers, such as airlines, hotels and car rental companies, with end-customers and other travel agents.

The Group was founded in 1999 by Javier Pérez-Tenessa and James Otis Hare and has been able to adapt its business model as the travel and internet space changed over time. eDreams has also transformed itself from a predominantly Spanish player into a diversified international online travel agency – international activities today represent a significant portion of total turnover.

eDreams has one of the best brands among European travel agents, one of the most comprehensive inventories of flight and other travel products and cutting edge search and pricing technologies.

Javier Pérez-Tenessa, Managing Director, said: ”We are delighted to partner with Permira, as this will allow eDreams to fully benefit from the growth opportunities in our core markets both from an organic and from an M&A point of view.”

Carlos Mallo, head of Permira Spain, said: “eDreams is a fast-growing business operating in a highly attractive market place. It has performed well through the downturn and has great potential for continued expansion as well as representing an excellent platform for the expected market consolidation in Europe.”

Ajit Nedungadi, a Managing Director at TA Associates, said: “We have enjoyed working with eDreams over the past four years, building on its strong financial performance and superior platform to foster organic growth and international expansion. We wish Javier and the entire team at eDreams much continued success.”

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 Permira Funds have been advised by Linklaters (legal support) and KPMG (financial and tax due diligence).

eDreams has been advised by UBS (financial advisor), Ashurst and Garrigues (legal advisors).

About Permira

Permira is a private equity firm with a European heritage and a global reach. The firm advises funds with a total committed capital of approximately €20 billion (US$28 billion). Its funds, raised from pension funds and other institutions, make long-term investments in companies with the ambition of transforming their performance and driving sustainable growth.

Permira is wholly independent and owned by its Partners. The firm’s teams are based in Frankfurt, Guernsey, Hong Kong, London, Luxembourg, Madrid, Menlo Park, Milan, New York, Paris, Stockholm and Tokyo. They specialise in five key sectors of activity: Consumer, Financial Services, Healthcare, Industrials and TMT.

About eDreams

eDreams is the largest independent European online travel agency. The company offers its services in Spain, Italy, France, Portugal, Germany, UK, Australia, Brazil, Canada, Mexico, Chile, India, Peru, Venezuela, Argentina, Colombia, Switzerland, USA and the global English language markets. eDreams has experienced one of the highest growth rates in the European online travel marketplace. The company has a large selection of flights, hotels, flights + hotel and other products, and makes them available to its clients through booking engines with the latest pricing and search technology.