FastBooking (France) - Oct 2007

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01 October 2007

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In a deal valuing the company at €45m, venture-backed hotel reservations company FastBooking has been bought out by 3i and Edmond de Rothschild Investment Partners (EdRIP). The private equity firms invested €35m in equity and convertible bonds to acquire a combined 62% of the business. 3i provided three-quarters of the amount. Management retains 35% in the company. The deal means an exit for venture capital firm Iris Capital, which generated 3.3x the money invested since 2000. Iris Capital opted to sell in part because its funds are reaching the end of their life. Jefferies was mandated to seek new backers or owners. In a three-round process, the corporate financier received interest from strategic buyers in the online tourism sector and French and international private equity firms. Iris Capital initially invested in FastBooking alongside business angels at the company’s inception in 2000. Further cash was injected on two occasions, including a €3.2m round of funding in October 2001, when the firm invested via Mediatel Capital and Part’Com (March 2002, page 16).

Company

Founded in 2000, Paris-headquartered FastBooking provides hotels with online reservation solutions. Via its own websites or hotel websites, the company instantly books prospective guests into its 3,500 client hotels. The group also provides information on pricing and competitors to its clients. New growth is expected to come by the recruiting of new client hotels and by acquisitions in what is considered a fragmented European market. Additional debt is likely to be raised to finance these purchases. The business volume generated by FastBooking’s services increased 230% over two years, to reach €200m in 2006. As a result, the company’s fee-based revenues are expected to increase by more than 60% in 2007. The firm has been profitable since 2004. FastBooking has six offices worldwide and employs 120 staff.

People

Jean-David Chamboredon and Pierre Martini were in charge of negotiations for 3i, while Pierre-Yves Poirier and Sylvain Charignon worked for EdRIP and Amal Amar, the co-founder and chairman of successful property website Seloger.com, joins the board of directors. Erik de la Rivière negotiated the exit on behalf of Iris Capital. FastBooking was founded by Richard Kefs, Thierry Lamblin and Soraya Kefs.

Advisers

Equity - Cazenove, David Vanek, François Kittel, Julien Audran (Corporate Finance)Equity - Egon Zehnder International, Helen Reltgen, Philippe Compagnion (Other Consulting)Equity - KPMG, Isabelle Lhoste, Jacques Pierre, Jerome Lo Iacono (Other Due Diligence)Equity - Lovells, Charles Delavenne, David Guez, Delphine Vanner, Jon Harry (Legal)Equity - PKF, Kerrie Osborne, Robert Barnard (Other Due Diligence)Management - White & Case, Nicolas Huet (Legal)Vendor - Guillaume Binder, Guillaume Binder, Hughes d’Haussonville (Legal)Vendor - Jefferies & Co, Eric Lawson-Smith, Guillaume Bonneton, James Hill (Corporate Finance)