Global travel deals publisher Travelzoo has acquired a 60% stake in Barcelona-based start-up and flight deals subscription service Jack’s Flight Club.
The deal, which was reported to the United States Securities and Exchange Commission on January 13, was for a purchase price of $12 million.
The filing says the remaining 40%, of parent JFC Travel Group, is subject to a call/put option exercisable on or around January 2021 subjects to terms set out in a Stock Purchase Agreement.
Jack’s flight Club was set up by co-founders Jack Sheridan and Phil Wintermantle in 2016, operating as an email newsletter for cheap flight deals.
It claims to have saved members over £30 million annually in airfares in the three years it has been in business.
As of March last year, the firm claimed to have 1.2 million subscribers. It operates a free or paid-for membership service, the latter receiving a greater volume of deals.
The newsletter has generated a significant following as well as consumer media attention due to its ability to find cheap fare and mistake fares as it constantly monitors price fluctuations.
Travelzoo, which claims to have five million subscribers in the UK alone and 28 million globally, operators a similar email-based subscription model sending its users a weekly Top 20 deals.
Listed on NASDAQ, Travelzoo is currently in a black out period and said as such it was not able to make any comment.