Private equity investor TowerBrook has acquired an unspecified controlling shareholding in Irish car rental software provider CarTrawler.
The buyout firm picked up the stake in exchange for a EUR 100.00 million investment in the business, which enables users to rent cars and arrange coach, chauffeur, rail and taxi transfers online.
Proceeds will be used to strengthen CarTrawler’s existing technology while allowing it to continue growing and shoring up its balance sheet during the turbulent period caused by the global Covid-19 pandemic and the associated disruption to the travel market.
However, the company believes it is in a good position to benefit when the current travel restrictions are relaxed, due to its broad offering and range of business partners.
Chief executive Cormac Barry said: “This investment will allow CarTrawler to come out of this period of unprecedented disruption with a stronger platform for growth.”
Towerbrook’s investment chief, Gordon Holmes, added: “The lockdown measures implemented in response to COVID-19 have presented enormous challenges, even for well managed and attractively positioned companies like CarTrawler.
“However, the company’s value proposition is, if anything, even more relevant post-COVID 19 than before. CarTrawler’s management, breadth of relationships and positioning provide an excellent platform to serve its customers and achieve its long-term growth ambitions as the travel market recovers.”
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 3,860 deals targeting providers of data processing, hosting and related services announced worldwide since the beginning of 2020.
Of these, the most valuable was worth USD 13.00 billion and saw Morgan Stanley agree to pick up E*Trade Financial in February.
This was followed by a USD 7.10 billion takeover of Credit Karma by Intuit, via Halo Merger Sub II.
Other companies in the sector to have been targeted since the beginning of the year include Plaid, Global Blue and Instructure.
© Zephus Ltd