Activity provider Isango has been acquired by Tui Travel’s accommodation and destinations division.
Tui said the move was part of its strategy to invest in fast-growing segments of travel and grow online sales of destination services.
Isango, which launched in 2007, will continue to be managed by its existing management team who will work closely with Tui Travel A&D.
Ranjan Singh, Isango co-founder and chief executive, said: “This is a pivotal time for Isango. Becoming part of Tui Travel is the icing on the cake and caps a strong period of growth for our business.
“By combining the strengths of the two businesses, we can create a formidable player in this very exciting sector of the travel. We are excited to be sharing our consumer insights and leading edge technologies with the major player in this market.”
Carlos Muñoz, managing director of Tui Travel A&D, B2B Division, said Isango’s technology and product lines would be integrated into Tui’s business.
“Innovation and new technologies are at the core of our business. isango fits well into our strategy, and brings complementary products, as well as innovative technologies.
“We will be integrating Isango´s technologies and product lines into our business to enhance our online distribution channels and increase sales of our travel products in destinations to our customers worldwide.”
Harry Stoakes, associate director at BDO Corporate Finance who advised on the deal, said: “BDO received strong interest from a number of trade and private equity buyers for Isango, which has grown to be one of the largest aggregators of travel experiences across the globe in just six years.
“Isango was an early mover in the emerging market for online destination activity booking information, which has traditionally been a cottage industry and which addresses an attractive growth market, given the burgeoning trend for activity-based holidays.
“Having achieved stellar growth, by doubling its turnover every year for the last few years, and critical mass, with approximately 12,000 activity product options listed in around 60 countries, it has proved to be an attractive platform for industry and financial buyers alike.
“We expect to see more M&A of specialist online travel businesses such as Isango, with private equity and trade buyers keen to gain a foothold in this high growth segment of the market by acquiring ready-made platforms which they can develop further.”