Lastminute.com has today announced that it is buying the largest
on-line travel agency in France, Degriftour Group for £58.9
million. The move will make lastminute.com the third largest
e-commerce company in Europe.
The UK company says that the acquisition, which is still subject
to shareholder approval, will accelerate its progress to cash
profitability. The purchase price will be paid in the form of £27.1
million in cash and the issue of 19.7 million new shares.
Brent Hoberman, CEO of lastminute.com, said:
“This is a great deal. It achieves today
what our business plan would have taken two to three years to
achieve in France. It gives us clear market leadership in France to
add to our UK leadership. Our gross profit increases by almost nine
times. Our top management is strengthened and it accelerates the
time in which we become cash flow positive. This is a step jump in
our ability to deliver the lastminute marketplace.”
The web sites of Degriftour and lastminute.com will be
linked.
