Cendant has revealed that it is “more likely” its Travelport unit, formerly called the Travel Distribution Services division, will be sold rather than spun-off into a public company as originally planned.
Buyout firms Bain Capital, Texas Pacific Group and Apollo Management submitted bids for the business last month, and several others have expressed interest, according to reports.
Travelport takes in Orbitz, Cheaptickets, Galileo, Ebookers, Gullivers Travel Associates and Octopus Travel, among others.
One investment banker, who declined to be identified, said these travel distribution businesses would probably be sold to one financial buyer, rather than a strategic buyer, such as Sabre or Expedia Inc, because a finance house wouldn’t have to face antitrust issues that would come with a purchase of Galileo.
Cendant plans to spin off Travelport by October. The rest of the company’s spin-off plans remain on track, Cendant said.
The real estate business, Realogy, would become an independent public company, and the lodging businesses, Wyndham Worldwide, would become independent. Both deals are expected to occur at the same time.
The remaining business, operated by Cendant, would be Avis Budget Group.