CVC acquires Etraveli in €508m EV deal

Kenny Wastell
20 June 2017

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CVC Capital Partners has agreed to acquire Swedish online travel agent Etraveli from trade vendor ProSiebenSat.1 in a deal giving the business an enterprise value of тЌ508m.

The transaction values the business at around 14x its adjusted EBITDA, according to a statement issued by the vendor.

Other potential buyers, including Blackstone and an unnamed Nordic bidder, were also involved in the auction process, a source close to the situation told unquote" sister publication Debtwire.

The deal comes less than two years after the vendor acquired the business in a deal giving it an enterprise value of €235m.

Under its new ownership, Etraveli will look to undertake an acquisitive international expansion strategy.

CVC's capital for the transaction was drawn from CVC Fund VI, which writes equity cheques of more than $150m. The vehicle held a final close on €10.5bn in June 2013, after just six months on the road.

The acquisition of Etraveli is expected to complete in the third quarter of 2017.

Debt
A source close to the deal told unquote" that Credit Suisse, Jefferies and UBS have underwritten a loan deal to support the transaction, though no further details were provided at this stage. Debtwire recently cited unnamed sources who said pitches for the senior debt and unitranche packages during the auction process stood at around 4.5-5x.

Company
Founded in 2000 and headquartered in Uppsala, Etraveli is an online travel agent focusing on airline tickets, hotel accommodation and travel services. The company's platforms are available in 46 countries and generates revenues of SEK 900m, according to its website. Sources told Debtwire the company was marketed with an EBITDA of €37m.

Etraveli operates under the Gotogate, Supersaver, Seat24, Flygresor.se and Charter.se brands. It has additional offices in Stockholm, Gothenburg and Miami, as well as operations in India and Poland.

People
CVC Capital Partners – Lorne Somerville (partner); Gustaf Martin-Löf (managing director).
Etraveli – Mathias Hedlund (CEO).

Advisers
Equity – Evercore (corporate finance); McKinsey & Company (commercial due diligence); Roschier (legal); Hengeler Mueller (legal); PwC (financial due diligence).