Information on the Target

On January 7, 2025, Enterprise Investors Fund IX, in partnership with the European Bank for Reconstruction and Development (EBRD) as a minority co-investor, has signed an agreement to acquire a significant minority stake in eTravel. eTravel is recognized as the largest corporate travel management technology company in Central and Eastern Europe. This investment, valued at up to 250 million PLN, is intended to enable the company to consolidate the industry within the region and is currently awaiting approval from the Office of Competition and Consumer Protection.

This transaction marks the beginning of a strategic partnership between Enterprise Investors and eTravel's founder and CEO, Andrzej Wierzba. The deal involves the buyout of passive shareholders and aims to accelerate the company’s geographical expansion, strengthen its market position, and broaden its service offerings. Founded in 2006, eTravel has emerged as an undisputed leader in corporate travel management across Central and Eastern Europe. The company operates a modern proprietary self-service platform, the Corporate Travel Assistant, which significantly enhances user efficiency and convenience while reducing costs. The platform features extensive functionalities, access to a comprehensive database of hotels and flights, and seamless integration with accounting systems and corporate travel policies. In 2023, eTravel facilitated nearly one million bookings, including 300,000 flights and the same number of hotel reservations, serving prominent public institutions such as UNICEF, the Organization for Security and Co-operation in Europe, and the National Bank of Poland, among numerous corporate clients.

Industry Overview in the Target’s Specific Country

The corporate travel management industry is undergoing dynamic changes driven by the increasing demand for outsourcing and digital solutions. This shift presents substantial opportunities for companies like eTravel, which enhance operational efficiency through direct integration with service providers. As the industry adapts to evolving market needs, there is a marked emphasis on technological advancements that support streamlined processes and improved cost management.

Market trends indicate a growing preference among corporations for services that afford greater transparency and control over travel expenditures, aligning with the expanding digital transformation across various sectors. Companies are increasingly recognizing the value of leveraging technology to optimize their travel operations while minimizing overhead costs. As a result, the corporate travel management landscape in Poland and the broader Central and Eastern European region is expected to expand significantly in the coming years.

Enterprise Investors aims to actively support eTravel in further solidifying its leadership position in the Polish market while selectively expanding into promising markets in Central and Eastern Europe. This ambition is encapsulated in the vision to establish a regional champion, as noted by Jakub Kuberski, a partner at Enterprise Investors.

Moreover, the integration of sophisticated analytical tools and automated processes is anticipated to enhance service delivery in corporate travel management. With players in the industry adopting innovative technologies, the future of corporate travel looks promising, and the competition is set to intensify as key market players strive to offer differentiated services that meet evolving client demands.

The Rationale Behind the Deal

The rationale behind this investment is rooted in the recognition of eTravel’s strong market positioning and its capacity for innovation within a dynamic and rapidly evolving sector. Dariusz Prończuk, managing partner at Enterprise Investors, expressed confidence in the company’s potential and outlined the strategic alignment of the partnership with their investment strategy, which focuses on supporting firms that blend technological leadership with growth ambitions.

Additionally, the investment is expected to accelerate eTravel’s international expansion and bolster its competitive edge through further investments in operational and technological development. This collaboration aims to leverage eTravel’s strengths and create a leading corporate travel management platform in the Central and Eastern Europe region.

Information about the Investor

Enterprise Investors is one of the largest private equity firms in Central and Eastern Europe, operating since 1990 and having established ten funds. To date, these funds have invested or committed to invest a total of EUR 2.3 billion in 160 companies and have successfully completed exits from 140 companies.

With a proven track record in the private equity landscape, Enterprise Investors brings a wealth of experience in identifying and nurturing high-growth potential companies. The firm's deep understanding of the regional market dynamics positions it well to support eTravel in achieving its ambitious growth objectives and maintaining its competitive leadership in the industry.

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This partnership is viewed positively, as it has the potential to significantly enhance eTravel’s competitive position in the rapidly evolving corporate travel management sector. Given the industry's trajectory towards increased digitalization and outsourcing, this investment aligns with broader market trends that favor technology-driven solutions.

Furthermore, the strategic support from Enterprise Investors is likely to provide eTravel with the resources needed to scale its operations efficiently and expand into newer markets effectively. As such, this deal not only capitalizes on existing strengths but also lays the groundwork for future growth opportunities.

Additionally, the focus on creating a regional platform to exploit synergies across Central and Eastern Europe speaks to a forward-thinking investment strategy that seeks to maximize returns while fostering innovation in the sector. Such a platform could consolidate eTravel's market leadership and potentially set the stage for successful partnerships with other regional players.

In conclusion, the partnership between Enterprise Investors and eTravel appears to be a sound investment, showing promise for long-term value generation while supporting eTravel in its goal of becoming a top player in Europe's corporate travel landscape.

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