Travelport Sold as Part of $4.4 Billion Deal
Officials from Travelport Worldwide Ltd revealed Monday that two buyout firms will take the company private as part of a $4.4 billion deal.
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According to Reuters.com, Siris Capital Group and Elliott Management reached the agreement after the latter worked for over eight months to purchase the travel software company. Elliott had a 12-percent stake in Travelport before the deal was struck and was pushing for the sale.
The consortium purchasing Travelport is offering $15.75 per share, a 2.3 percent premium to the company’s closing price on Friday. Shares were valued at $15.60, around the same cost as when the company went public four years ago.
With the purchase, officials believe the headquarters of Travelport will remain in the United Kingdom. The details of the deal need to be finalized and the sale is expected to close in the second quarter of 2019.
Travelport will remain focused on providing technology infrastructure to travel vendors for hotel reservations and package tours. The company generated net revenue of $622.5 million for the quarter which ended September 30, but boasts nearly $2.3 billion debt.