Travelport Worldwide Limited has announced a significant development as a group of existing equity holders and lenders commits to injecting $570 million of new equity financing into the company. This infusion of funds is poised to fortify Travelport’s capital structure, supporting further investments in its technology platforms and fostering innovations to enhance the travel industry’s customer service.
The new investment comes as part of an agreement aimed at substantially deleveraging and strengthening Travelport’s balance sheet. Post-transaction, the company’s ownership structure will undergo a transformation, featuring existing equity and credit investors such as Elliott Investment Management, Davidson Kempner Capital Management, Canyon Partners, Siris Capital, and other institutional investors. These stakeholders will continue to offer strategic counsel and support to Travelport’s management.
Greg Webb, Chief Executive Officer of Travelport, expressed gratitude for the investors’ support, stating, “This investment demonstrates our investors’ support for Travelport and will advance our mission to reinvent a better future for the travel industry.”
The transaction is anticipated to provide Travelport with a robust balance sheet, positioning it with minimal debt compared to its peers. Webb believes this financial strength will propel the company toward long-term, profitable growth. He added, “Most importantly, this Transaction will further strengthen our operating business and accelerate our investments in Travelport+ and other initiatives that make us the most innovative and agile partner to all our customers.”
In the past year, Travelport has undertaken strategic investments and initiatives, including the acquisition of Deem, a leading corporate travel management platform, and the upgrade of over 85% of the company’s agency customers to Travelport+. The newly secured investment will empower Travelport to expand its customer offerings, particularly in advancing developments in Travelport+, such as supporting a wide range of carrier NDC offerings and the Content Curation Layer—an innovative, machine learning-powered search engine that normalizes and personalizes all sources of travel content.
The transaction is expected to close by the end of the year, contingent on obtaining requisite consents and satisfying customary closing conditions.
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