Feeds

Lastminute.com buys travel agent for £9m

Share issue

  • alert
  • submit to reddit

Seven Steps to Software Security

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. ®

Boost IT visibility and business value

More from The Register

next story
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.