Cinven raises €284 million from sale of further 4.6% stake in Amadeus IT Holding, S.A.
European private equity firm Cinven today announces that it has successfully completed the sale of a further 20.5 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 €13.9 per share, realising a further €284 million for the Third Cinven Fund, adding to the €1.15 billion already realised from this investment.
The share price of €13.9 per share represents a 26.4% increase over IPO at €11 per share and a significant outperformance against the IBEX index, which grew at 14% over the same period. Cinven's total cumulative realised value to date is 6.1x its original investment cost.
Following this sale, Cinven holds approximately 15.3 million shares, or a 3.4% stake in Amadeus. As is customary for a transaction of this type, all sponsor and airline shareholders will be subject to a lock-up provision of 90 days.
Commenting on the transaction Stuart McAlpine of Cinven said:
"Amadeus has continued the momentum gained in 2008, 2009 and 2010 to demonstrate strong performance since its IPO. Our investment in Amadeus clearly highlights Cinven's ability to originate compelling European investment opportunities that continue to generate strong returns for our investors."
Cinven originated the investment in Amadeus 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. Despite a challenging market environment, the company's IPO on the Madrid Stock Exchange launched on 29 April 2010 at a price of €11 per share and raised a total of €1.44 billion.
Amadeus underwent a significant transformation while in private ownership since 2005. By 2009 it had 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 48% revenue and 84% EBITDA growth that Amadeus experienced over the six years between 2004 and 2010.