Saga in £20m swoop for holiday firm Destinology

BOLTON-based online tour operator Destinology has been acquired by over 50s specialist Saga plc for an initial £20m.

The eventual price tag for the £50m turnover business could hit £30m if performance targets are met, Saga said.

Destinology, founded in 2004 by managing director Dominic Speakman, has 100 staff at its Bolton headquarters and a further 10 at a high street shop in Wilmslow.  It specialises in four and five star holidays to the UAE, Far East, Indian Ocean and Europe.

It is understood that Saga has paid £20m for a 75% stake in the company. It has an option to buy the remaining stake, and could pay a further £10m if Destinology meets performance targets.

The acquisition will be wholly funded from existing cash resources within the Group’s Travel business.

Saga said key senior management, including founder Dominic Speakman, will remain with the business.

Lance Batchelor, Saga group chief executive,  said: “Destinology is one of the UK’s leading travel businesses with strong expertise in online sales and marketing and award winning service so we are very pleased to have brought the business into the group.

“It is an excellent fit with our existing travel brands – Saga Holidays, Saga Cruises and Titan Travel – particularly in relation to the demographic it serves, and will enhance our range of travel offers to customers.”