FRP advised the shareholders of Dubai-based Getabed on its merger with Indian-based RoomsXML. Both companies operate in the travel sector in the ‘hotel bed banks’ market.
Getabed has been trading since 1991 and has offices in the UK and United Arab Emirates, where it is run from Dubai. RoomsXML is an online accommodation wholesaler serving travel agents and tour operators with offices in Australia, India, the UAE and the US, and has been trading since 2007. This cross-border deal gave the new group a significant global reach.
The deal had a number of complex challenges to overcome, partly as a result of the various countries in which the companies both operate. With FRP’s international expertise, we were able to work through these to provide the best possible outcome for all parties.
The fact that one international group was selling to another guaranteed a higher degree of complexity than a ‘domestic’ disposal involving English companies. In addition, the aim was to create a merged group with both owners continuing with the business post-completion. With the accommodation wholesale market evolving rapidly, our client needed to ensure that it remained relevant, so merging to become a single entity made complete sense.
We were able to strip back the layers to steer a path through the transaction for the sellers, who had no previous experience of such a complex deal.
The merger created stability and longevity for the business and the UK operation, enabling it to evolve and develop. It will provide significant benefits of scale, which will then be passed on to the customers and suppliers, creating a genuine global business with deep penetration into travel agency space across the UK & Ireland; Europe, the Middle East and Africa; and the Asia-Pacific region.
The completion of the deal highlighted FRP’s ability to manage international transactions that have local connections to the south-east region.
This cross-border deal gave the new group a significant global reach.Adrian Alexander Corporate Finance