Advised Momondo Group, the leading travel metasearch engine operating under the Momondo and Cheapflights brands, on its sale to Great Hill Partners
Oct 2014
acquired by
$214 million
  • Sector: Media & Internet
  • Deal Type: Private Equity Deals
  • Engagement type: Sellside
  • Size: $214 million
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Arma Partners is pleased to announce that it has acted as exclusive financial adviser to Momondo Group, the pioneering online travel metasearch company on the sale of a majority equity stake to Great Hill Partners, the Boston-based growth equity fund. Great Hill Partners has made an £80m cash investment in Momondo Group, valuing it at more than £132 million.

With offices in London, Copenhagen and Boston, Momondo Group provides online travel search to over 17.5 million visitors per month – plus 7 million travel newsletter subscribers – across more than 30 core international markets, via its Momondo and Cheapflights brands. Following the investment by Great Hill Partners, Momondo Group aims to further focus on growing the business and more rapidly capitalise on the double-digit growth rates in the travel metasearch sector. In particular, Momondo Group sees a significant opportunity to continue developing its metasearch model for mobile and to expand its global footprint into new and emerging markets worldwide.

This transaction demonstrates Arma Partners’ expertise in the online travel space and its ability to deliver highly successful outcomes for innovative entrepreneurs.

– Established in 1996, Cheapflights is a UK-based online travel deal publishing  business

– In 2011, Cheapflights acquired Momondo, a Nordic provider of online flight and hotel metasearch, before changing the group’s name to Momondo Group Limited (“MGL”)

– MGL plans on transitioning its Cheapflights sites towards a metasearch model

– The Company operates in more than 30 countries worldwide

– Great Hill Partners is a leading private equity firm with advised funds of $2.7 billion

– Established in 1999, Great Hill Partners has played an active role in the mid-market including more than 50 portfolio company investments, over 100 consolidating acquisitions

– Great Hill Partners acquired a majority stake from the Company’s founders and other individual shareholders

– Management rolled over a significant minority stake into the new Company

– Great Hill Partners plan on growing the business through  developing its metasearch model for mobile, and expanding its global footprint into new and emerging markets

– The investment will give Great Hill Partners access to the double-digit growth rates in the travel metasearch market

– MGL had received an inbound expression of interest that triggered the process, and Arma was engaged to assist

– Arma contacted the most qualified financial sponsors and trade buyers to determine interest in the business

– In parallel, Arma worked extensively with management to articulate the company’s growth strategy and corresponding financial plan

– Great Hill Partners emerged as the most attractive bidder for the business and Arma consequently worked towards a very tight and compact timeline to complete the deal