Cinven raises €263 million via sale of part of its stake in Amadeus IT Holding, S.A.
London, 8 October 2010 - European private equity firm Cinven today announces that it has successfully completed the sale of 19.5 million shares in Amadeus IT Holding, S.A. ("Amadeus"), a leading transaction processor and provider of advanced technology solutions for the global travel and tourism industry, at a price of €13.50 per share realising €263 million of gross proceeds for the Third Cinven Fund.
Cinven originated the investment via a public-to-private transaction in 2005 valuing the business at €4.4 billion. BC Partners and three airline shareholders - Air France, Lufthansa and Iberia - co-invested with Cinven.
Amadeus underwent a significant transformation while in private ownership and as at 31 December 2009 connected over 103,000 travel agencies, upwards of 720 airlines and more than 85,000 hotels and had increased its global market share by 8% to 37%. Its innovative IT solutions business, originally a small contributor to the group, has grown to be the leader in the passenger service solutions market, with a 28% share of revenues by 2009. During the period of private ownership, over €1 billion was invested in product development. This huge commitment drove the 35% revenue and 62% EBITDA growth that Amadeus experienced over the six years between 2004 and 2009. Performance in the first half of 2010 has continued strongly, with a year-on-year increase in EBITDA of 20%.
Amadeus also generated strong cash flows and continued to reduce leverage throughout the economic cycle. Since its refinancing in May 2007, Amadeus reduced its net debt to EBITDA ratio from 5.4x to 3.6x in December 2009. As of June 2010, the ratio fell further to 2.9x.
Despite a challenging market environment, the company's IPO on the Spanish Stock Exchanges, launched on 29 April 2010 at a price of €11 per share, raised a total of €1.44bn.
Closing on 7 October was €13.87/share, which implies a 26% increase since IPO pricing of €11.00/share and an outperformance versus the IBEX index which grew by 5.6% over the same period.
Following the refinancing in 2007, listing in April 2010 and this sale of shares, Amadeus will have returned 3.6x Cinven's original investment. Cinven will retain a 13.0% shareholding and have agreed an additional lock-up period of 90 days with BC Partners. Air France, Lufthansa and Iberia.and other airline shareholders.
Commenting on the transaction Stuart McAlpine of Cinven said:
"Since listing on the Spanish Stock Exchanges, Amadeus has continued to perform well and attract strong institutional interest. We retain a 13.0% stake in the business underlining our continued commitment to the company."
Our investment in Amadeus clearly illustrates Cinven's ability to originate compelling European investment opportunities that generate strong returns for our investors."