Tech firm plans office expansion
Traveltek attracts £5.3m private equity support
Traveltek, which provides packaging technology to travel agents, tour operators and wholesalers worldwide has received a £5.3 million injection from YFM Equity Partners (YFM), the specialist private equity fund manager.
The investment has been made by the VCT and LP funds managed and advised by YFM.
Founded in East Kilbride in 2002, Traveltek has delivered a near-250% 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 develop the product and accelerate its international office expansion from four to 12 and staff numbers from under 100 to c. 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. Mr Harrison has a wealth of experience in developing and growing software businesses having been CEO of Maxima holdings in Glasgow which he grew to £56m of sales and £9m of profit.
The two firms worked closely with local advisers on this transaction, including the Campbell Dallas corporate finance team, Consilium chartered accountants, and law firms Bellwether Green and HBJ Gateley.
Traveltek group managing director, Kenny Picken (pictured) said: “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 added: “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.”