Out-Law / Your Daily Need-To-Know

Lastminute.com has today announced that it is buying the largest on-line travel agency in France, Degriftour Group for £58.9 million. The move will make lastminute.com the third largest e-commerce company in Europe.

The UK company says that the acquisition, which is still subject to shareholder approval, will accelerate its progress to cash profitability. The purchase price will be paid in the form of £27.1 million in cash and the issue of 19.7 million new shares.

Brent Hoberman, CEO of lastminute.com, said:

“This is a great deal. It achieves today what our business plan would have taken two to three years to achieve in France. It gives us clear market leadership in France to add to our UK leadership. Our gross profit increases by almost nine times. Our top management is strengthened and it accelerates the time in which we become cash flow positive. This is a step jump in our ability to deliver the lastminute marketplace.”

The web sites of Degriftour and lastminute.com will be linked.

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