Skift Take
It sounds like the potential buyers didn't accept the company's new strategy — or the buyers weren't willing to pay enough. Regardless, while it's certainly a risk, eDreams Odigeo is doing the right thing in diversifying its business and improving price transparency.
EDreams Odigeo has ended a strategic review of the business, which could have seen the company sold.
The Barcelona-based online travel agent had attracted interest from several private equity companies, according to reports, but any prospects of a sale look to now be over.
EDreams Odigeo said it had concluded its strategic review and would now be concentrating on its transformation plan. And it is this new strategy that appears to have thwarted any deal.
The company said in a statement that potential “investors have assigned a risk profile to the transformation that does not match the view of the board.”
Private equity firms Permira (29.5 percent) and Ardian (17.2 percent) will continue as shareholders.
EDreams Odigeo is pinning its future on two initiatives: revenue diversification and change of price display.
The former will see the company move away from lower-margin flight sales, while the latter will improve transparency.
“The board has agreed that eDreams Odigeo is best placed to capitalize on the renewed strategic focus, operational success and strengthened financial position,” said Philip Wolf, chairman of eDreams Odigeo.
“The board is confident that the management team will continue to successfully deliver on the strategy, driving sustainable growth and maximizing value for stakeholders.”
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Tags: edreams Odigeo, mergers and acquisitions, online travel agencies, ota, private equity
Photo credit: Dana Dunne, eDreams Odigeo CEO. The company has ended its strategic review. eDreams Odigeo