Information on the Target

Resource Partners has successfully acquired an 80% stake in the ITH Group, which operates leading online travel agencies including Vola.ro in Romania and Fru.pl in Poland. The acquisition allows Resource Partners to leverage ITH's strong market position and expand its operational footprint, particularly in Central and Eastern Europe (CEE).

ITH Group has established itself as a major player in the online travel sector, demonstrating robust growth and resilience over the past years. Despite market challenges, the company has seen a consistent increase in turnover, indicating a successful adaptation to changing market dynamics.

Industry Overview in the Target's Specific Country

In the travel industry, Romania and Poland are emerging as key markets within the broader CEE region. Recent statistics reveal that air traffic levels have now surpassed those seen before the COVID-19 pandemic, showcasing the sector's recovery and potential for future growth. The burgeoning online travel market benefits from an increasingly tech-savvy population that favors online booking platforms.

Romania's Vola.ro is recognized as the leading player in the local online travel sector, driving innovation and consumer engagement. Concurrently, Poland's Fru.pl has fortified its presence, becoming a pivotal figure in the online travel agency landscape in Poland. The competitive environment is encouraging, with both companies prioritizing customer-centric services and technological advancements.

As the travel industry evolves, particularly in the backdrop of post-pandemic recovery, online travel services are witnessing surging demand. Innovations in fintech and digital booking solutions are paving the way for companies in the sector to capture the interests and needs of modern travelers.

In summary, the online travel market in Romania and Poland is rich with opportunities, bolstered by shifting consumer behavior and a swift embrace of technology. This transformation is likely to fuel continued growth, enabling established players like ITH Group to capitalize on expanded market needs.

The Rationale Behind the Deal

The acquisition by Resource Partners is strategically aimed at accelerating the growth trajectory of the ITH Group across Europe. By securing an 80% stake, Resource Partners is positioned to provide both financial backing and operational guidance, enhancing the company’s capability to scale.

The management buyout led by the existing leadership team emphasizes continuity and stability within the organization. Daniel Truică, co-founder and CEO, maintaining a significant minority stake ensures that the original vision and strategic direction of ITH will persist, which is crucial for maintaining operational integrity and culture.

Information About the Investor

Resource Partners is a renowned private equity firm established in 2009, which has focused its investments primarily in the CEE region, having raised more than 500 million euros across multiple funds. Its expertise lies in supporting businesses with significant growth potential and experienced management teams, contributing to their organic growth and strategic acquisitions.

The firm is particularly well-versed in retail and eCommerce, positioning it ideally to boost ITH Group's business in the consumer services sector. As an investor in the travel and technology sectors, Resource Partners brings forth a wealth of knowledge that can foster ITH's innovation and market outreach.

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The investment by Resource Partners in the ITH Group signals a strong endorsement of the travel agency’s market leadership and growth potential. From an analytical perspective, this acquisition represents a strategic initiative that could yield favorable returns over time, particularly in the growing online travel sector.

Given the ongoing recovery of the travel industry and ITH’s resilience during challenging periods, the investor's confidence appears well placed. The strong leadership of Daniel Truică, coupled with Resource Partners’ experience in fostering growth, positions the company advantageously for expansion in new geographical areas and innovative service offerings.

Moreover, with technological advancements fueling a transformative phase within the travel sector, iTH stands to capitalize on developing fintech solutions, enhancing customer experience, and streamlining operations, which could further drive profitability and market share.

In conclusion, the acquisition could well be viewed as a prudent investment, reflecting a commitment to harnessing the evolving landscape of travel and technology. The continued leadership of ITH's management affirms the prospects for sustained growth and success in this dynamic market.

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