Fexco buys car hire reservation firm

Payments systems specialist Fexco has bought a car rental reservation service in a deal valued at up to €8 million.

The company announced yesterday that it has bought Nova Rentacar Reservations Ltd, a global online broking service with headquarters in Portaferry, Co Down.

Neither side revealed details of the price. However, industry sources yesterday valued it at €5-€8 million.

Nova Rentacar was owned by its founders, Mr Patrick Baird and Ms Collette Baird.

Current company records show that, in April 2003, it had total assets of £358,011 (€533,247) and shareholders' funds of £343,778.

The company has been trading since 1998. It offers discount rates on car rentals at more than 3,000 city and airport depots around the world.

Nova Rentacar acts as a broker, providing clients with the cheapest available car rental deal at their destination. It has arrangements with a number of the key operators in the sector, including Budget, Europcar, Alamo and National.

It began as an Irish service but has developed a global reach over the past six years. The service covers Ireland, Europe, the Middle East, Asia Pacific and North America.

The company will trade as part of Fexco's travel and leisure division, where it will operate in conjunction with its online tourism information and bookings service, Gulliver.

Gulliver managing director Dr Stewart Stephens said that the company had plans to "further enhance" Nova Rentacar's service.

He added that the acquisition was a perfect fit with the tourism reservations business.

Nova's general manager, Mr Bernard Roddy, said that Fexco's acquisition and its planned investment in the business would allow the company to reach the next stage of growth and extend its existing geographical base.

Fexco has been trading since 1981, when its current executive chairman, Mr Brian McCarthy, established the business in Killorglin, Co Kerry, where it is still based. It has operations in Ireland, the UK, the US and Australia.

Fexco has developed from providing foreign exchange to managing a range of payment services for consumers and business.

It is privately owned, and US-based First Data Corporation, the world's biggest payment processor, has a minority stake in the business.

Fexco bought a majority shareholding in Gulliver from its original developer, Bord Fáilte, in 1997. It acquired the outstanding stake last month.

It provides an all-island information and accommodation reservation service for tourists and processes bookings for almost 9,000 properties around Ireland.