Great Hill invests £80m in Momondo buyout

Great Hill acquired a majority stake in the business. Momondo's existing management team will remain in place and retain its significant minority stake.

Momondo stated it received interest from several private equity firms and corporates before deciding to partner with Great Hill. Arma Partners advised the company.

The company plans on further expanding internationally by bolstering its position in existing markets while entering new and emerging markets.

Momondo also plans on further developing its meta search model for mobile service.

Company
Momondo's roots go back to 1992, when air-travel data sourcing company Skygate was established. Flight comparison site Cheapflights, founded in 1996, bought Skygate and Momondo in 2011 to form Momondo Group. Momondo itself was founded in 2006 as a Nordic meta-search tool.

The company is headquartered in London with additional offices in Copenhagen, Toronto and Boston.

Momondo operates a travel search engine, which it claims receives more than 15 million visitors per month. The company also says 6 million people have subscribed to its travel newsletter.

Momondo recorded £43.4m in revenues last year. For the first quarter of 2014, the company generated £14.5m, which it says is a 29% year-on-year increase. It also reported an EBITDA of £3.2m for the same period. The company employs 200 staff.

According to Momondo, 85% of its revenues are now generated outside the UK, thanks to the company's new country-specific websites for China, South Africa, Brazil, Canada and Australia.

People
Hugo Burge is the CEO of Momondo. Michael Kumin is a managing partner at Great Hill.

Advisers
Company – Arma Partners (Corporate finance); Dechert, Graham Defries (Legal).

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• Topics
• UK / Ireland
• Buyouts
• Consumer
• United Kingdom