itravel | Updates

By Axel Schmiegelow

itravel takes over 100% of SD Inspiring Travel GmbH and receives EUR 1.25 million in financing

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Dear Companists,

As mentioned in previous updates, we have spent the past few months working intensively to expand the basis of our business. We have now succeeded in acquiring a new investment and have taken an important step for the entire company by acquiring SD Inspiring Travel GmbH.

 

SD Inspiring Travel – Market Leader for Family Vacations

The 18 employees of SD Inspiring Travel GmbH, founded in 2010, will strengthen the itravel team in important key areas after the transition, in particular in customer consulting, technology development, and content management.

Dennis Kämker, Managing Director of SD Inspiring Travel GmbH, will join the management board of itravel GmbH as Chief Financial Officer (CFO), thus decisively strengthening the management of the group for the further development of the company.

The previous shareholders of SD Inspiring Travel GmbH, such as Schwetje Digital GmbH, managed by Onvista founder Michael Schwetje and Lars Fink, will also become shareholders of itravel GmbH as new investors and will dispatch an advisory board member. This also reinforces the expertise on the financial side of itravel.

SD Inspiring Travel GmbH is geared towards arranging trips for families with the brands Clubfamily.de, Familienschiff and KUF Reisen. Clubfamily.de is the most far-reaching special portal for family holidays, the market leader in its segment (online advice and mediation of family holidays), and has built up a sustainable market position with a high regular customer share. This strengthens itravel in the segment of family travel and Mediterranean summer destinations.

Like the integration of Vermundo Reisen GmbH as a specialist provider for romantic and honeymoon trips in 2016, SD Inspiring Travel will remain an independent business unit, complementing itravel's five existing business units, which are divided into destinations and target groups.

The acquisition of the share of SD Inspiring Travel GmbH will become economically effective retroactively as of 1 January 2018, the beginning of SD Inspiring Travel GmbH's current fiscal year.

 

Reasons for the Transaction

The essential motivation for bringing the companies together was, in itravel's view, the immediate strengthening of the company in a highly competitive but important market segment (family travel). For SD Inspiring Travel GmbH, the merger with itravel offers the opportunity to jointly achieve a strategic dominance in the market and thereby help to establish a more attractive market position than by limiting the company to the role of a niche provider.

 

Financing

To finance the transaction and its follow-up costs, itravel issued a convertible note which attracted an investment company around PriceWaterhouseCoopers' former partner, Rene Beltjens, as a new investor. Again, this strengthens the expertise of the shareholders. In total, itravel GmbH's capital was increased by EUR 1.25 million through a capital increase and convertible note.

 

Sales and Earnings Targets

On the basis of the takeover, planned travel revenues for the current fiscal year will increase to around EUR 22.8 million. If the growth path pursued so far continues, the company as a whole will exceed the threshold of EUR 100 million in travel revenues in four years.

We also expect cash flow break-even and a positive operating result in the current 2018/2019 fiscal year.

 

Travel Revenues / Gross Profit

 

The German Commercial Code (HGB) turnover after departures will also increase significantly, following the accounting entries:

 

HGB-Revenues / HGB-Gross Profit

 

Valuation

As a result of the capital measures described above, itravel's valuation has already increased to a total enterprise value of around EUR 25 million. Nevertheless, we maintain the campaign conditions for Companists until the campaign goal is reached.

 

Promotion Program EYnovation

itravel receives further recognition through its inclusion in Ernst & Young's innovation promotion program "EYnovation," which offers access to experts in the fields of corporate structuring, tax law, and localization, particularly for internationalization.

We are very grateful for the support of all Companists and continue to work on the development of our company with full force!

 

Best greetings from your team at itravel,

Axel, Gerald, Dennis and the team



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€ 3,350,000

Invested ( € 2.64M co-invested )

1005

Companists

2.44 %

Share Offered

Please note
The acquisition of this asset involves considerable risks and can lead to the complete loss of the assets used. The expected yield is not guaranteed and may turn out to be lower.
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