Private equity fund manager YFM Equity Partners has invested GBP5.3 million in TravelTek, a Scottish technology business which provides packaging technology to travel agents, tour operators and wholesalers worldwide.
The investment has been made by the VCT and LP funds managed and advised by YFM.
Founded in 2002, TravelTek provides travel retailers, agents and wholesalers with the technology to package together an extensive range of hotels, flights, cruises and ancillary travel services in one transaction.
TravelTek has delivered a near 250 per cent increase in sales in the last four years from its offices in Scotland, England, Australia and the US.
YFM’s investment will be used to further develop TravelTek’s product and accelerate its international office expansion.
Since meeting the management team earlier this year, YFM and TravelTek have been working on a growth plan which will see the existing international office network increase from four to 12 and staff numbers in the group from under 100 to circa 200 during the next three years.
As well as recruiting senior travel industry executives to the team, YFM has also introduced Kelvin Harrison as chairman of the board. Harrison has a wealth of experience in developing and growing software businesses having been CEO of Maxima in Glasgow, which he grew to GBP56 million of sales and GBP9 million of profit.
TravelTek managing director Kenny Picken says: “We chose YFM based on its long history of working successfully with owner managed teams and growing businesses internationally. YFM’s investment will allow us to continue to develop our market leading position by accelerating our existing international office network as well as expanding our local Scottish headquarters to support this growth.
“We have been particularly impressed with YFM’s commitment to backing our business and we look forward to working with the team as we enter this next key stage for our business.”
Nigel Owens, investment director at YFM, says: “TravelTek is the only fully integrated, technology focussed packaging solution for travel agents and travel operators in the world. We have been impressed by management’s commitment to fully understand its customers’ business and create market leading tailored solutions. The existing development of the international office network and TravelTek’s growth in sales is testament to the proposition and the existing management team we are backing.”
