ATLANTA -- Worldspan's airline owners -- Delta, Northwest and
American -- completed the sale of the GDS company to Travel
Transaction Processing Corp., a firm newly formed by Citigroup
Venture Capital Equity and Teachers' Merchant Bank.
The deal, which was announced in March, is worth about $1
billion. Worldspan's new owners are paying about 75% of the sale
price in cash.
Delta, which owned 40% of Worldspan, said it received $285
million in cash, $125 million in credits for Worldspan services
over nine years and a $45 million subordinated promissory note that
matures in 2012.
Northwest, which had a 34% stake in the GDS firm, said it
received $280 million in cash, in addition to credits for future
services.
American said it got $180 million in cash and a $39 million
promissory note for its 26% stake in Worldspan. American had
acquired its stake in Worldspan as part of its 2001 purchase of
Trans World Airlines' assets.
Now that Delta, Northwest and American have sold their stakes in
Worldspan, only one of the four GDSs -- Amadeus -- is
airline-owned.
Following through on a decision announced in March, Worldspan
president and CEO Paul Blackney resigned upon the sale of Worldspan
and Rakesh Gangwal assumed leadership.
Gangwal formerly was president and CEO of US Airways. Blackney
assumes the role of "special advisor to the company" and occupies a
seat on Worldspan's board of directors.