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The UK-based Momondo Group, which operates travel metasearch and deals sites in more than 30 markets under the Momondo and Cheapflights brands, has hired UK-based investment bank Arma Partners to mull investment and sales options.
Momondo Group has been approached in recent months by a handful of private equity and travel companies about investments after publicizing its first quarter results earlier this year.
Contrary to a published report, Expedia and Sabre are not believed to be among the suitors.
With Expedia Inc.’s Trivago metasearch business seemingly doing extremely well and expanding globally, an Expedia interest in the Momondo Group would seem to make little sense.
And, Sabre’s potential interest in the Momondo Group is absurd given the fact that Sabre has spent the last two years shedding most of its online travel consumer businesses, with the exception of LastMinute.com.
The Momondo Group, which is transforming its deal-publishing Cheapflights brand into a metasearch player, states it retained advisors Arma Partners “to look at strategic options for the business as it drives forward the next stage of its growth strategy.”
“We would stress that we are extremely well-positioned to continue to grow the business, and our preference is for an investment from an organization which shares our vision for the continued international expansion of Momondo Group and rollout of the brand globally,” Momondo Group states.
Momondo Group recently secured an $8.3 million revolving credit facility, but is looking for additional investment to spearhead its growth plans as it competes against players, such as Kayak, Skyscanner and others, that have far more resources.
Company officials are quick to point out that the Momondo Group is doing well and that retaining strategic advisors is not a sign of weakness, but such a motivation is not out of the question when any company mulls strategic alternatives.