TA Associates completes €153 million leveraged buyout of eDreams

TA Associates, a leading buyout and private equity firm, has completed the €153 million leveraged buyout of Spain-based online travel company eDreams.

Founded in 1999, eDreams focuses on offering the best selection and prices for flights, hotels and vacation packages to customers in Spain, Italy and France. Over six million customers have purchased their hotels, flights and vacations packages with eDreams since inception. In 2006, eDreams sales are expected to exceed €300 million.

The LBO provides for the purchase by TA and eDreams’ current management team of 100 percent of the shares of the company from shareholders, including DCM – Doll Capital Management, Apax Partners, Atlas Venture and 3i Group, among others.

An official released stated: “Currently, 15 percent of travel bookings are made online in the southern European market. This figure is expected to reach more than 30 percent by 2009. Given the sharp increase in penetration, the online travel markets in Spain and Italy are expected to grow strongly.”

“The southern European retail travel market is significantly underpenetrated in terms of online purchasing,” said Ajit Nedungadi, director - TA Associates Ltd., who will join eDreams’ board of directors. “eDreams will benefit as its target markets catch up with Northern Europe and the U.S. in the proportion of travel purchased online. We expect that the company will continue to gain market share and defend its leading position.”

Christian Grünwald, a vice president at TA Associates, who will also join the company’s board of directors said, “In addition to its leading market position, eDreams has very strong financial performance, a superior platform that allows it to offer unique products and services and lower ticket prices than competitors, and a solid and experienced management team. We look forward to working closely with them to further build value in eDreams through organic growth and international expansion.”