Mondee Reportedly Gets $20 Million From Travelport Owners to Support Going Public

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Some recent corporate efforts to go public through mergers with blank check companies have stalled or failed. But it’s a vote of confidence in Mondee that Travelport’s financial sponsors Elliott Management and Siris Capital have reportedly invested funds to help the travel tech company go public.

Sean O’Neill

world, a travel technology company based in San Mateo, Calif., said on Monday that the blank check company that aims to buy it has secured critical funding for the merger with IPO plans. Elliott Management and Siris Capital – the institutional investors who happen to own another travel tech company, Travel port – would be among the investors.

Ithax Acquisition Corp., a special purpose acquisition company, raised an additional $20 million for its private equity investment, or PIPE. Ithax’s planned $967 million merger with Mondee is now all but certain. The deal would lead to Mondee trading on the Nasdaq stock market.

The two new investors who have pledged to subscribe for $20 million to the all-equity PIPE are an arm of Elliott Management, the investor, and Siris Capital, the Financial Times saidciting “people briefed on the deal”.

Mondee declined to comment. Elliott and Siris could not be reached at the time of publication.

Ithax now has investor commitments worth $70 million for its all-stock PIPE, including from Morgan Stanley Investment Management and private equity firm Arc Pe, the company said.

Mondee provides technology services for several travel business models. Its flagship business model helps leisure travel agencies sell airline tickets through wholesale discounts. But it has branched out into other concepts, including a subscription-based consumer travel agency and a business travel booking service.

Travelport is one of the content providers for Mondee’s platforms.

The company said its profitability sets it apart from startups that have recently struggled after going public through special purpose acquisition companies, or SPACs. Dozens of startups have been punished by plummeting stock prices after did not meet performance projections.

In pre-pandemic 2019, the company generated $46 million in adjusted earnings before interest, taxes, depreciation and amortization on $177 million in adjusted net revenue. In 2020, he suffered a loss of $12 million.

In 2021, Mondee rebounded. It generated $1.2 million in adjusted earnings on net revenues of over $90 million. See his pitch deck and more details in Skift’s La Mondee article last month.