TA Plots E-Commerce Growth

TA Associateswill look for ways to grow Internet travel booking companyeDreamsorganically and through acquisitions. The Barcelona, Spain, company is able to generate cash and doesn't need outside funding for expansion, saidChristian Gruenwald, v.p. at TA in London. But if there is a merger or acquisition, TA will finance the deal and possibly use debt, he added.

The Boston shop acquired eDreams in a $195.4 million leveraged buyout from shareholders includingDoll Capital Management,Apax Partners,Atlas Ventureand3i Groupand management. The management team then reinvested to take a 20% stake and TA retained the rest. More than half of the deal was funded with TA equity and the rest through debt.Fortisprovided senior debt on the deal.

Gruenwald said the Barcelona-based travel business attracted the private equity firm because of its management team's ability to outperform competitors, TA's interest in e-commerce and eDreams' growth potential. E-commerce in Europe has a lower penetration rate than in the U.S. and U.K. Southern Europe will catch up, Gruenwald said.