[London, ENGLAND] European late deals company
lastminute.com has
paid US $89 million for Degriftour
Group,
France’s largest e-travel company.
The takeover, announced Monday, makes lastminute.com the largest
European-based e-commerce company, based on revenues.
Degriftour Group has been an online retailer since 1991 and
has 50 percent of the French market, with a quarter of a
million customers since April 1998. Its acquisition will
transform lastminute.com’s position in France and add
substantially to its overall revenues.
Brent Hoberman, lastminute.com’s chief executive, hailed it
as “a great deal,” and said it achieved today what his business
plan would have taken two to three years to achieve in France.
“Our gross profit increases by almost nine times. Our top
management is strengthened and it accelerates the time in
which we become cash flow positive. This is a step jump in
our ability to deliver the lastminute marketplace,” said
Hoberman.
lastminute.com will pay for its acquisition partly by
issuing 19.7 million new ordinary shares and partly in
the form of just over US $40 million in cash, of which
$8 million need not be paid for a year.
Pierre Alzon, general manager of Degriftour Group, appeared
well-satisfied with the deal, saying that it took the
company closer to its long-term ambition of radically
transforming the European online marketplace.
“We are delighted to have found a partner that is complementary
in philosophy and vision and allows us to offer customers a
unique global last minute solution,” said Alzon.
A private company, Degriftour Group was owned 78 percent
by its founder, Francis Reverse, and his circle of family
and associates. Over 9 years it has built up relationships
with major European travel and leisure suppliers, offering
tours, tickets, meals and accommodation.
Degriftour Group transacted over US $75 million with gross
profit of US $13.7 million for the year ended March 31, 2000.
