Cendant sells Travelport

Cendant Corporation has agreed to sell Travelport to an affiliate of The Blackstone Group for approximately $4.3 billion.

The move is part of a strategy announced in October to split Cendant, the owner of Days Inn and Cheaptickets.com, into four companies by selling off three of its divisions.

Cendant said proceeds from the sale of Travelport would be primarily used to reduce the debt allocated to its Realogy and Wyndham subsidiaries.

Following completion of the Travelport sale, debt levels for Realogy and Wyndham are expected to be around $750 million and $600 million respectively.

Cendant now expects to simultaneously spin-off its Realogy and Wyndham Worldwide subsidiaries in late July.

Travelport – formerly known as Cendant’s Travel Distribution Services division –  employs over 8,000 people in more than 140 countries.

It operates over 20 brands, including Orbitz, Galileo, and wholesaler GTA.

The Blackstone Group is an international private investment and advisory firm founded in 1985.

Its other core businesses include private real estate investing, corporate debt investing, hedge funds, and mutual fund management.

Jeff Clarke, Travelport’s president and CEO, said: “As a private company, Travelport will now have considerably greater financial latitude and firepower to take advantage of burgeoning opportunities in the travel market, adding our unmatched global reach and local expertise, together with our strong management team and unique portfolio of assets, is a great combination for future success in the flourishing travel space”.  

Gordon Bethune, Travelport’s chairman, added: “I believe Travelport is poised to become the most relevant global brand in the travel industry, adding whether you’re a traveller, travel professional or travel supplier, Travelport will offer more ways for customers to create and enjoy exceptional travel experiences”.

*What is Travelport?

It is described as “an integrated, focused leader in a dynamic $6 trillion industry that processes over 100 million transactions annually” and has over 8,000 employees in 140 countries, owning a portfolio of more than 20 leading travel brands including, Orbitz, Galileo, Gullivers Travel Associates (GTA).

Travelport provides access to more than 400 airlines, 75,000 hotels, 28,000 car rental locations and 8,000 tourist attractions, connecting travel suppliers to 52,000 travel agency locations and leading online travel sites including Orbitz, CheapTickets and ebookers.

It delivers over 17 million hotel bookings a year, reserves more than 10.5 million cars per annum and provides e-ticketing on over 120 airlines.

By Bev Fearis