Private equity firm considers £200m IPO for On The Beach

Private equity firm Inflexion is considering a £200 million initial public offering of online holiday company On The Beach.

Private equity firm Inflexion is considering a £200 million initial public offering of online holiday company On The Beach.

The Telegraph reported at the weekend that Inflexion has held a “beauty parade” of bankers to pitch to lead the company’s IPO.

It is understood the company is looking for a market valuation of around £200 million, which will mean it is worth around ten times earnings of £20 million.

Such a valuation would mean a significant return for Inflexion, which bought the business from rival Isis Equity Partners for £73 million last October.

The company is also gearing up for an international expansion drive and recently launched a Scandinavian website, with plans to create German and Dutch sites. On The Beach will also expand its long-haul offering, starting with Dubai, with plans to add the Far East and the Caribbean.

Unlike other recent technology flotations, On The Beach has been profitable from the start, some ten years ago. Founder Simon Cooper began the company from his Manchester terrace house generating holiday leads from Teletext.

On The Beach specialises in short-haul packaged beach holidays and sells more than 900,000 a year.

Inflexion declined to comment.