Information on the Target

Interactive Travel Holdings (ITH) is a prominent player in the online travel sector, leading the market with its brands Vola.ro in Romania and Fru.pl in Poland. ITH has experienced substantial growth and holds a significant presence in Bulgaria and Moldova as well. The company provides a comprehensive range of travel services for both individuals and businesses, including flight bookings, hotel reservations, vacation packages, and travel insurance.

Under the tenure of Daniel Truică, CEO of ITH, the company has flourished, particularly during the tumultuous period of the Covid-19 pandemic. Truică has credited the support from 3TS Capital Partners and Catalyst Romania for guiding the company’s transformation and positioning it strategically for future growth opportunities.

Industry Overview in Romania

The online travel agency (OTA) sector in Romania has evolved significantly over the past decade, spurred by the rapid adoption of digital technologies and a growing reliance on e-commerce platforms for booking travel. As one of the fastest-growing segments in the broader travel and tourism industry, OTAs have carved out a leading role in facilitating flight and accommodation services through user-friendly online interfaces.

In recent years, Romanian consumers have increasingly favored the convenience and transparency offered by online travel booking platforms, driving demand for enhanced user experiences and innovative travel solutions. This trend has been further accelerated by shifts in consumer behavior post-pandemic, as travelers seek more adaptable and personalized options for their journeys.

Despite facing challenges during the pandemic, the Romanian OTA sector has shown resilience, with companies like Vola.ro leveraging their technology to improve services and expand market share. The ongoing recovery of international travel is anticipated to bolster growth in the Romanian travel industry, which is expected to continue its upward trajectory in the coming years.

Looking ahead, the competitive landscape is set to intensify as new entrants and existing players innovate and diversify their offerings, while regulatory frameworks around travel operate to adapt to changing consumer needs. As such, investments in this sector are likely to generate substantial returns due to the enduring demand for online travel services.

The Rationale Behind the Deal

The acquisition of ITH by Resource Partners is viewed as a strategic move designed to capitalize on ITH's market leadership and growth potential within Central and Eastern Europe (CEE). This transaction not only validates the business model that ITH has developed but also positions the company for further expansion into new European markets.

With an established track record of strong revenue growth—seeing a threefold increase over the past three years—ITH is well-situated to benefit from the rebound in travel demand, following the pandemic. The investment is anticipated to accelerate ITH’s initiatives aimed at enhancing its suite of travel products and services, reinforcing its leadership in the sector.

Information About the Investor

Resource Partners is an independent private equity fund established in 2009, boasting a robust portfolio of investments across Central and Eastern Europe. Since its inception, the fund has successfully raised over €500 million and focuses on companies with proven management teams poised for growth.

The team at Resource Partners brings extensive experience in driving accelerated organic growth and fostering international expansion, enabling them to leverage their expertise in supporting ITH as it embarks on new market entry strategies. Their commitment to strategic partnerships positions them as an ideal partner for ITH in this new growth phase.

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This acquisition represents a compelling investment opportunity, showcasing not only the resilience of ITH during challenging economic times but also its strategic positioning within a recovering travel market. With clear growth signals stemming from consumer demand for enhanced online travel services, this deal aligns well with Resource Partners' focus on companies capable of significant growth and innovation.

Moreover, the backing of 3TS Capital Partners and Catalyst Romania has proven instrumental in transforming ITH into a data-driven, technology-focused enterprise. Their prior contributions have not only solidified ITH’s market presence but have also established strong operational foundations for future growth.

The ongoing expansion efforts by ITH, especially into new geographic territories, promise ample opportunities for revenue diversification and increased market capture. This investment is likely to yield fruitful outcomes as both parties leverage each other's strengths and expertise to navigate the evolving travel landscape.

In conclusion, this deal is characterized by strong potential, driven by an experienced management team, a resilient business model, and favorable market conditions. Resource Partners’ investment in ITH is poised to be a beneficial partnership, reinforcing their commitment to supporting leading enterprises in high-potential sectors.

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