Abu Dhabi: Gulf Capital, one of the largest and most active alternative asset management firms in the Middle East, is pleased to announce that it has entered into an agreement to sell Destinations of the World (“DOTW”) to Webjet Limited (“Webjet”). DOTW is being sold for US$173 million, resulting in an IRR in excess of 15% and making it one of the largest technology exits to date in the Middle East. This acquisition will firmly solidify Webjet’s position as the number 2 B2B travel player globally. Webjet is acquiring DOTW from Gulf Capital, its founder and its management team.
Commenting on the sale, Dr. Karim El Solh, CEO and Managing Partner of Private Equity at Gulf Capital, said: “We are very pleased to be announcing today the strategic sale of Destination of the World to a prestigious global player like Webjet. Gulf Capital has worked very closely with the DOTW management team to build a high-quality global business with a strong market position over the last five years. Under Gulf Capital’s ownership, DOTW has nearly doubled its Total Transaction Value from US$279 million in 2013 to an estimated $529 million for the last 12 months to June 2018.. During its ownership period, Gulf Capital has also transformed DOTW from a local player into one of the world’s largest B2B players through a series of bolt-on acquisitions and rapid organic expansion across Asia, Europe and the Americas. This transaction is yet another example of Gulf Capital’s ability to back local businesses and to transform them into global leaders.”
Webjet’s Managing Director, John Guscic said: “I am truly delighted to announce the acquisition of Destinations of the World which solidifies WebBeds’ position as the #2 B2B player globally. WebBeds is focused on helping our clients succeed and enabling our hotel partners to respond to fast-changing market trends. The acquisition of DOTW will ensure we can accomplish this on an even greater scale than we have achieved to date. DOTW is a company we have worked with for many years, and we have the greatest amount of respect for its business. We look forward to working with the DOTW team in the weeks and months ahead as we integrate our businesses and develop the best possible outcomes for all of our partners and clients.”
Following the acquisition, WebBeds will have more than 2,100 employees, allowing it to provide truly local support to its worldwide partner network. It will feature a portfolio of more than 250,000 hotels in all regions of the globe, of which c.28,500 are directly contracted.
Abdullah Shahin, Managing Director of Private Equity at Gulf Capital, said: "Our investment in DOTW highlights our strong focus on value addition and operational improvements in our portfolio companies. In the case of DOTW, we have managed to attract a world class management team, streamline the operations through offshoring back office functions to the Philippines, expand rapidly around the globe through organic expansion, and complete a series of bolt-on acquisitions and, in the process, nearly double the size of DOTW. Gulf Capital has also invested aggressively into DOTW’s technology platform, migrating it to the cloud, upgrading its infrastructure and expanding daily online search capacity from less than 10 million searches per day to 1.5 billion searches. DOTW’s technology platform is now considered one of the leading platforms in the industry. We are confident that DOTW will continue its robust growth trajectory under the ownership of Webjet and that the combined group will achieve significant scale and synergies.”
Dr. El Solh concluded: “This is a landmark transaction not only for Gulf Capital, but also for the entire private equity industry in the Middle East. It highlights the ability of regional private equity firms to make focused bets on technology firms in the Middle East, to add significant value, to secure sales to global strategic buyers and to generate attractive returns for investors. Gulf Capital has invested in five technology-related companies to date, and we look forward to continuing our technology investment activities and to increasing our exposure to the nascent New Economy in the Middle East.”
-Ends-
About Gulf Capital
Gulf Capital is one of the leading alternative asset management firms in the Middle East, investing across several asset classes including Private Equity, Private Debt and Real Estate. The Firm currently manages AED 12 billion (US$3.3 billion) of assets across 8 funds and investment vehicles. Gulf Capital’s mission is to grow capital and build value with world-class expertise and best practices to generate sustainable superior performance for all stakeholders. It invests its own capital alongside its fund investors’ capital in all of the funds it launches. With its private equity, private debt and real estate initiatives, Gulf Capital is today one of the largest and most diversified alternative asset managers in the Middle East. The Firm has received numerous Middle Eastern and international awards, including “Best Private Equity Firm”, “Best Private Debt Provider” and “Best Alternative Asset Management Firm” in the Middle East.
About Webjet
Webjet Limited is an ASX Top 200 listed company (WEB) operating a digital travel business with over A$3 billion in total turnover as at June 2018. Webjet operates in both the B2C and B2B sectors.
WebBeds is the world’s second largest accommodation supplier to the travel industry operating its B2B travel business through; Sunhotels (Europe), JacTravel and Totalstay (Global & Europe), FIT Ruums (Asia) and Lots of Hotels (Americas, Middle East and Africa). WebBeds provides our global network of travel trade partners with a choice of more than 250,000 hotels around the world, comprising c.23,000 direct contracts, 60+ third party providers and 25 major hotel chains. Customers can access this huge choice of inventory, ranging from city-centre international chain hotels to independent beach properties, via market-leading booking websites or an API. Clients can also access transfer services in 950 destinations, and thousands of tour guide excursions and attraction tickets.
WebBeds also provides tailor-made travel arrangements for groups of all sizes covering leisure, special interest, education and MICE.
About DOTW
DOTW is a global pure-play B2B accommodation wholesaler connecting highly fragmented suppliers with travel bookers/retailers (travel agents, online travel agents and tour operators) and third party intermediaries. Founded in 1994 and headquartered in Dubai, DOTW has offices in MEA, APAC, Europe and the Americas.
FOR MEDIA INFORMATION:
Borouj Consulting
Randa Mazzawi
+971 50 4506120
Nicola Ellegaard
+971521678103
© Press Release 2018Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
