Travelport Is Being Taken Private in $4.4 Billion Deal
Skift Take
The long-predicted buyout of public-company Travelport has happened at a premium of about twice the market capitalization of the company. Expect a spinout of the company's eNett payments division and the proverbial "cost restructuring."
Travelport is being taken private in an all-cash transaction valued at approximately $4.4 billion that follows a process that began at the start of the year by New York activist investor Elliott Management.
The third-largest e-commerce platform for the distribution of air, hotel, and other travel content is being acquired by affiliates of Siris Capital Group, and Evergreen Coast Capital, which is the private equity affiliate of Elliott.
Travelport’s market capitalization prior to the deal was about $1.9 billion.
The Langley, U.K.-based company had revenues of $2.45 billion in 2017, and earnings before interest, tax, depreciation, and amortization of $467 million in 2017. It has roughly $2 billion in debt.
It’s not the first time private equity has taken an interest in Travelport. Blackstone bought Travelport for $4.3 billion in 2006 and took it public in 2014. Blackstone’s purchase price was slightly less than today’s $4.4 billion proposed price. Adjusting for inflation, that is not a strong gain.
Travelport's advocates might say that to compare
