Private equity fund Norvestor is acquiring two leading online travel agents in Scandinavia – Seat24 Travel and SRG Online – through a newly created holding company European Travel Interactive.
ETI will run travel websites in 15 markets, trading from offices in six countries (Norway, Sweden, Denmark, Finland, Spain and Holland) under nine different brand names.
The company claims the deal will give it the highest online market share in the Nordic region, offering air tickets, hotel reservations and other travel-related services through multiple brands, with estimated gross sales of more than €275 million.
Seat24 and SRG achieved combined sales growth of close to 50% in the first seven months of 2007.
Seat24 CEO Ralph Axelson, who becomes CEO of the new company, said: “By joining forces with SRG we will take ETI to a new level through combining our mutual strengths, infrastructure and leading technology solutions.”
Rolf Straume, chairman of ETI and Partner in Norvestor Equity, said: “We have been following the online travel sector for quite some time and see a lot of potential for product development and consolidation within this relatively immature industry. We are excited to be able to work with the two most interesting players in the Nordics and a strong management team.”
Dan Ströborg, CEO and owner of SRG, said: “Bringing together the sales volume, software development resources, cost-efficiency, brand recognition and marketing skills of the two companies will form a powerful group. I believe the management forces from both companies, together with a strong board, will make ETI the new star of the Nordic travel business. I am very pleased after 18 years as the principal owner of SRG to leave the company in such good hands.”
by Phil Davies
