Ebookers' expansion forges ahead with purchase of Swedish Net firm
Tuesday 28 December 1999
The UK group agreed to buy STT Airways, a Swedish Internet travel firm with total sales of $26m (pounds 16m) in 1999. STT is a holding company whose subsidiary, Bijettakuten, is one of Sweden's leading online discounted fares agencies. The acquisition includes a business-to-business wholesale traditional travel company and a corporate travel unit.
Dinesh Dhamija, ebookers' chief executive, said: "We had planned to deliver various acquisitions over a period of nine months following our IPO. We are very pleased to be ahead of schedule."
Sanjiw Talwar, the UK group's finance director, said: "We want to be in all the major European countries by the third quarter of 2000." Specifically, he said, the company was targeting acquisitions in Italy, Spain, Norway and Denmark.
The value of yesterday's deal was not disclosed but Mr Talwar said ebookers had spent a combined $6m since its listing on acquisitions in Germany, Finland and Sweden. The company raised $55m after expenses from its initial public offering on the US Nasdaq exchange and Germany's Neuer Markt.
Sweden has the third highest Internet penetration in the world, at some 30 per cent. Mr Talwar said: "We looked at two or three companies in Sweden. But STT had the strongest web presence and the best relationships with local airlines." He said the Swedish group also had a strong management team, which would stay on board after the acquisition was completed.
Ebookers' shares rose 2.8 per cent, to 18.5 euros (pounds 11.66) on the Neuer Markt. The shares have fallen 29 per cent since trading began on 12 November, when their spectacular stock market debut left Mr Dhamija with a stake worth $304m. In US trading, the shares closed unchanged at $18 on Thursday, the last day of trading before the acquisition was announced.
Earlier this month, the company announced that its sales for the third quarter had trebled to $8.1m. Excluding sales from the group's French and German acquisitions, turnover for the three-month period exceeded the entire 1998 calendar year. But the company reported a net loss of $2.4m, against a $100,000 profit previously.
Ebookers has access for selling direct negotiated fares to 26.5 million Internet users in Western Europe. The group's website now averages about 1,000 new registrations a day and site visits were about 400,000 in November. But the crucial "look to book ratio" is just 1 to 2 per cent.
- 1 Strictly Come Dancing 2014: Gregg Wallace joins line-up as final celebrities revealed
- 2 Notting Hill Carnival: Woman shares selfie after being ‘punched in face for telling man to stop groping her’
- 3 Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
- 4 Oil tanker with $100 million cargo goes missing off Texas coast
- 5 George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
Oil tanker with $100 million cargo goes missing off Texas coast
George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
Brother and sister, Christopher Buckner and Timothy Savoy, arrested for 'committing incest after watching 'The Notebook''
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Do you realise just how foolish the UK looks?
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
- < Previous
- Next >
iJobs Money & Business
£35000 per annum: Harrington Starr: Network Engineer (CCNP, CCNA, Linux, OSPF,...
£50000 per annum: Harrington Starr: DevOps Engineer (Systems Administration, L...
£60000 - £70000 per annum: Harrington Starr: A prestigious leading professiona...
£50000 per annum: Harrington Starr: Financial Technical Consultant (C++, C#, F...