Lastminute.com snaps up French rival
Online travel firm lastminute.com continued its shopping spree today as it splashed out £31.9m on French rival Travelprice.com.
The group is issuing over 34 million new shares to finance the deal, which cements its position as market leader in France and Italy.
Travelprice.com generated around £43m last year from sales of flights and package holidays across France, Italy, Belgium and Spain.
Lastminute managing director Martha Lane Fox said the deal would be earnings enhancing in the first year after completion.
Around $10m will be saved as the group combines the business with its existing French operations, lastminute and Degriftour.
Lastminute’s French and UK divisions moved into profit in the three months to March and the group as a whole is expected to move into the black next year.
It has already bought Destination Holdings, owner of the travel4less site, and rival dotcom Travelselect.com in the past three months.
Ms Lane Fox said: ‘‘I’m sure there are other deals out there, we have turned down a lot more than we can take, but nothing is planned at the moment.’’
Lastminute offers last minute deals on entertainment, airline tickets, hotel rooms and restaurant reservations.
The group is currently in its busiest season and Ms Lane Fox said: ‘‘Current trading is good, we are cautiously optimistic.’’
Shares in the business were unchanged at 92p in early trading today.
