Dublin, 27 September 2005 - FEXCO, the Kerry, Ireland-based global payments company, has today completed the purchase of CNG Travel Group plc's Leisure Division for a consideration of US$2.5 million. In addition, CNG will receive further performance-based payments over the next three calendar years, up to an aggregate total of US$1.1 million.
CNG's Leisure Division includes its B2C hotel booking web sites, placestostay.com and cnghotels.com together with its worldwide hotel inventory of over 25,000 exclusive rate hotel contracts. The business also includes contracts with hundreds of traditional and online travel agencies, as well as affiliates contracts with airline web sites and other online portals, driven by CNG's online booking and inventory management system.
CNG announced in June that following a strategic review of the business, it would exit from the B2C leisure market and seek a buyer for its B2C division, primarily the placestostay web site and related assets.
Dr. Stewart Stephens, Director of FEXCO, commented:
"We are delighted that the CNG online hotels business has become part of FEXCO. It's a great fit with our existing Irish online accommodation and international car hire businesses, and the systems and talents that are coming across will add greatly to our online travel division. CNG hotels gives us enormous scope for growth and we are really looking forward to working with our new colleagues to achieve that potential".
The CNG assets acquired by FEXCO will be integrated into its online travel division, which includes Gulliver Ireland, Nova Car Hire and Online Teetimes. Gulliver is Ireland's leading provider of tourist information and reservation services, and owns the GoIreland.com portal, the leading online consumer shop window for Irish tourism products and services. Novacarhire.com is an online car rental broker that combines the best rates in almost 5,000 destinations worldwide with old-fashioned customer service. Online teetimes (teetimes.ie) features discounted rates and online availability at over 40 Irish golf clubs and is Europe's first real-time online golf booking network. The rebranding of the acquired business will take place over the coming weeks.
As part of the deal, FEXCO will be taking on 48 former CNG staff.
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For further information, please contact:
Dr. Stewart Stephens, Director, FEXCO.
Telephone: (066) 9792112
Barry Ahern, Business Management Communications.
Telephone: (01) 4830832/ (087) 6683574
Notes to Editors:
FEXCO is a global payments company headquartered in Kerry, Ireland with operations in the Ireland, UK, Spain, Scandinavia, Malta, Australia, Dubai and USA. The company was established in 1981 by its Executive Chairman, Brian McCarthy, and offers a range of Global Consumer Payments, Global Corporate Payments and Business Services. The company is privately owned with USA-based First Data Corporation, the world's leading payment processor, holding a minority shareholding in the business.