Saga dips toe into M&A waters with Destinology deal

Saga, the over-50s specialist, yesterday made its first acquisition since floating earlier this year, buying a 75 per cent stake in online travel firm Destinology .

 

The deal, believed to be worth £20m, comes in the wake of Saga’s listing on the London stock market in May. The purchase will be funded from existing cash resources within Saga’s travel business.

 

Destinology is an online travel firm specialising in four- and five-star holidays to the UAE, Far East, Indian Ocean and Europe.  

 

Lance Batchelor, Saga chief executive, said that key senior staff at Destinology, which employs 110 staff, would remain in the business.

 

He added: “Destinology is one of the UK’s leading travel businesses, with strong expertise in online sales and marketing and award winning service so we are very pleased to have brought the business into the group.

 

“It is an excellent fit with our existing travel brands, Saga Holidays, Saga Cruises and Titan Travel, particularly in relation to the demographic it serves, and will enhance our range of travel offers to customers.”

 

The travel firm will complement Saga’s pre-existing travel services, traditionally popular activities for retirees such as cruises and rail tours and shows it may be looking to expand beyond its natural customer base. Saga is the UK’s leading provider of products and services for over-50s, with 2.7m customers. It deals with insurance, travel and financial services.

 

 

1 Lever joined Livingstone in 1999, having qualified as a lawyer at international law firm Cameron McKenna.

 

2 Led more than 50 deals, ranging from disposals to acquisitions and management buyouts, mainly in the consumer sector.

 

3 He previously worked on the recapitalisation and sale of online travel agent Iglu.com and the sale of The Leisure Pass Group.

 

 

Saga used MHP Communications for PR advice alongside its internal communications division and corporate affairs unit.