Cendant said on Friday that it would sell Travelport, the company’s travel distribution division, to an affiliate of Blackstone, the private equity group, in a $4.3bn cash deal.
Shares in Cendant, the world largest travel group rose 4 per cent to $16.41 on news of the deal, the biggest increase in almost two years, after falling by 8.4 per cent so far this year.
The sale of Travelport, which includes the Galileo reservations system and the Orbitz online travel website, comes after a decision in December by Cendant to split the company into four parts in order to bolster its flagging share price.
Henry Silverman, the chairman and chief executive of Cendant, is a former partner at Blackstone.
Cendant owns a a range of brands such as travel websites Orbitz and Ebookers, a massive hotels and timeshare business, a car rental division that includes Avis and Budget, and a large real estate unit.
The company had earlier said that proceeds from the Travelport sale would be used primarily to reduce debt in Realogy, its real estate arm, and Wyndham, which houses Cendant’s hospitality assets, including the Days Inn hotel franchise.
No comments yet.