Private equity firms weigh up bids for Opodo parent eDreams ODIGEO

Private equity firms weigh up bids for Opodo parent eDreams ODIGEO

Europe’s largest online Travel company is being reported as a potential target of a £500 million takeover.

The UK’s largest private equity firms are believed to be weighing up takeover bids for eDreams ODIGEO.

CVC Capital Partners, the former owner of Formula One, and BC Partners, another London-based buy-out firm that used to own estate agent Foxtons, are both considering offers for eDreams, the Sunday Times reported, quoting City sources.

Other potential buyers include Skyscanner, backed by Chinese travel agent Ctrip, which bought the travel search business for £1.4 billion in 2016.

EDreams ODIGEO hired investment bank Morgan Stanley International last year to carry out a strategic review.

The company confirmed in November that it was “assessing and evaluating various strategic options” and said the review process was at an early stage.

“The unanimous decision by the board of directors to strategically review its options was prompted by unsolicited indications of interest from potential investors and follows the company’s renewed strategic focus, operational success and strengthened financial position,” a statement said at the time.

The company has had a tough time since it floated on the Madrid Stock Exchange for €1.1bn in 2014, after Google changed its search algorithm in a way that cut eDreams’ web traffic.

It has also been embroiled in a row with airlines including Ryanair about how it advertises fares on its website.

The company runs the OTA brands eDreams, GO Voyages, Opodo, Travellink, and metasearch engine Liligo. CVC Capital Partners, eDreams and BC Partners all declined to comment to the newspaper.

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