"Today's offer from Sabre is an endorsement of the achievements of everyone at lastminute.com," said Brent Hoberman, CEO of lastminute.com – who will be kept on as CEO of the combined lastminute.com and Travelocity European operation.
Travelocity European, which is owned by leading travel corporation Sabre Holdings, is expected to improve its position in the growing European on-line travel market as a result of the acquisition.
Hoberman and Martha Lane Fox, who left the firm in 2003, set up the company in 1998, floating the firm almost two years later at the peak of the dot.com boom. It remains one of the very few dot.com brands from the UK that achieved and sustained a high profile.
At the time of the floatation the company boasted a debut share price of 380p, valuing it at more than £500 million. However, the share price slumped to just 17p in September the following year, prompting speculation that the company would collapse. The share price has recovered slowly since.
According to Brian Collie, Chairman of lastminute.com:
"The lastminute.com directors considered this offer from Sabre very carefully. While we all acknowledge lastminute.com's future prospects, we believe that this offer represents an excellent opportunity to deliver significant, certain value to shareholders now and to build an even stronger business for the future."
The deal has still to be approved by shareholders.
