Feeds

Lastminute.com buys travel agent for £9m

Share issue

  • alert
  • submit to reddit

The essential guide to IT transformation

Lastminute.com is buying Travelselect.com, a rival UK online travel agency, for £9m in new shares.

The acquisition will triple Lastminutes's UK flight volume, bulking up to annual UK revenues of £50m, the company says. Approx. 80 per cent of Travelselect's 200,000 annual air ticket sales are generated online. Also, the purchase will help Lastminute when introduces so-called "dynamic packaging" later this year i.e. it aggregates excess inventory from hotels and airlines for its cut-price holiday offers.

Travelselect is "immediately earnings enhancing", generating £3.3m of gross margin for the year to 31 Jan 2002. Lastminute says.

So what about the new share issue? Eighty per cent is subject to a lock-up provision of one year, so there is a risk of dumping on the market - and depressing the share price one year down the line. A new share issue dilutes the equity stake of the existing shareholders, but Lastminute.com does not appeared to have overpaid for a business which turns over nearly £40m a year and which catapults it into a significant position in the UK travel agency sector. ®

Build a business case: developing custom apps

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Ballmer quits Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.