Acquisition of Farebase to Generate Expansion
Phonelink PLC
1 November 1999
PHONELINK PLC
EXPAND INTERNET TRAVEL ACTIVITIES WITH
ACQUISITION OF FAREBASE LIMITED
PhoneLink plc, the electronic commerce,technology and service provider, has
today announced the acquisition of Farebase Limited (Farebase)for a
consideration of £400k. This has been satisfied by the issue of 1.25 million new
ordinary shares at 32p each. Application has been made to the London Stock
Exchange to list the new ordinary shares issued and admission to listing and
first dealings in the new ordinary shares is expected to occur on 4 November
1999.
Farebase specialises in the provision of Internet travel services through the
acquisition, consolidation and publishing of fares data on flights and last
minute holiday packages. It also provides such data to subscribing travel agents
via the Internet, CD and disk.
Farebase which had turnover of £576k and after tax profit of £37k in the year to
31 October 1998 is an established and highly respected travel information
content provider to over 700 retail travel agents in the UK and direct via the
Internet. As at 31 October 1998 Farebase had net assets of £58k.
The acquisition follows the announcement in early September 1999 of the launch
of PhoneLink's Internet Tel-Me Global Traveller service, www.telme.com, aimed at
business and independent travellers incorporating its new reward scheme, E
Miles. Since the launch of its Internet travel services in September, sales
achieved have been better than anticipated and have reached an
annualised £1 million from a standing start and are continuing to grow.
The acquisition of Farebase will enable PhoneLink to broaden the content of its
own Internet service, Tel-Me Global Traveller to include charter flights and
last minute holidays and appeal to a wider consumer audience. PhoneLink plans to
integrate the two Internet services.
This new integrated service will be a strong competitor to services such as
Microsoft's Expedia, Sabre's Travelocity and Sir Bob Geldof's
Deckchair offerings in terms of functionality and fares. In addition, unlike
most competing services, fulfilment of its Internet travel services will be via
PhoneLink's own corporate travel Subsidiary and will not rely upon third
party fulfilment.
The acquisition of Farebase will also enable PhoneLink to promote its travel
software effectively into Farebase's extensive customer base of travel agents.
Graham Ramsey CEO of PhoneLink plc commented 'The acquisition of Farebase
allows PhoneLink to extend its highly competitive and user friendly Internet
travel service, Tel-Me Global Traveller across both consumer and business
markets. PhoneLink's Internet service has received very favourable reviews and
we believe that the addition of Farebase's valuable content, in conjunction
with our E Miles reward scheme, will offer a unique Internet based travel
service and capitalise on the early success of Tel-Me Global Traveller.
PhoneLink's fast growing travel software business will also benefit
significantly from the relationship Farebase has with travel agents
and tour operators. It is our intention to become a major player in the Internet
travel market.'
Jon Constantine MD of Farebase commented 'Farebase has been involved in the
travel business for a number of years and we have witnessed the exponential
growth of travel booking over the Internet. Farebase believes that the travel
market will become the first global market to be dominated by the Internet and
we believe that we have found a credible partner in PhoneLink plc with the
technical and marketing resource to enable our combined service to
exploit this market.'
For further information, please contact:
PhoneLink plc
Graham Ramsey, Chief Executive 0171 240 2640
Richard Law, Finance Director 0151 608 0205
Ludgate Communications
Richard Hews 0171 253 2252
Victoria Martin
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