Travelport will be acquired by affiliates of Siris Capital Group and Evergreen Coast Capital in an all-cash transaction valued at approximately US$4.4 billion, expected to close in 2Q2019.
Under the terms of the agreement, Siris and Evergreen, the private equity affiliate of Elliott Management Corporation, will acquire all the outstanding common shares of Travelport for US$15.75 per share in cash.
Travelport will become a privately held company upon completion of the transaction by the US-based private equity firms and its common shares will no longer be listed on any public market. Its headquarters will remain in Langley, UK.
In a statement, Travelport said it may actively solicit alternative acquisition proposals from third parties during a “go-shop” period from the date of the agreement through January 23, 2019. It will have the right to terminate the agreement with Siris and Evergreen to enter into a superior proposal subject to the terms and conditions of the agreement.
Doug Steenland, chairman of the board of directors of Travelport, said: “Assisted by external advisers, the board concluded unanimously, after taking into account the ongoing development needs of the business, that entering into this agreement (to be acquired by Siris and Evergreen) represents the best way to maximise value for shareholders.
“It also enables the company to continue its work to position itself for growth in the evolving global travel industry.”
Gordon Wilson, president and CEO of Travelport, commented: “Travelport welcomes this proposed transaction with Siris and Evergreen, who are specialist technology platform investors. Throughout the process, Siris and Evergreen have demonstrated their deep technology expertise… We will continue to develop and invest in our platform to serve the changing needs of our customers in the travel industry. It is very much business as usual at Travelport and we look forward to this new era in the company’s development.”
On the decision to acquire Travelport, Frank Baker, co-founder of Siris Capital, said Travelport has a track record of develop and bringing to market distribution capabilities, technology services, payment solutions and other value-add digital tools for the global travel industry.
Jesse Cohn, partner at Elliott, too highlighted Travelport’s travel technology platform and B2B payments offering (eNett).
The transaction is not subject to any financing condition.