APN buys $20m stake in Roamfree

APN News and Media has agreed to acquire up to 20% of online tourism services firm Roamfree for $20 million.

APN News and Media has agreed to acquire up to 20% of online tourism services firm Roamfree for $20 million.

APN will provide Roamfree with up to $20 million over five years and will also take up a seat on the Roamfree board.

APN News & Media is one of the Australasia’s most broadly based and successful media companies with a market capitalisation exceeding $2.7 billion. The company is the largest operator of regional newspapers, radio broadcasting and outdoor advertising in Australasia, as well as the owner of websites including www.thedaily.com.au.

Roamfree has recently launched one of the world’s most extensive global accommodation search engines, roamfree.com.

APN Online Chief Executive Officer Warren Lee said the investment was an excellent opportunity to become involved in an emerging leader in online tourism.

“The roamfree.com model is unique – there is nothing else like it in the market,” he said.

“Roamfree.com allows consumers to search, compare and book a huge and growing range of accommodation and then pay the provider directly on the one platform. I recommend everyone to the site.”

Roamfree Managing Director Tony Smith said he welcomed APN’s investment in the company.

“It is a clear show of confidence in Roamfree and its strategy to become the leading provider of online search for global accommodation,” he said.

“APN is an ideal cornerstone investor for us, not only for their broad reach in the media but for their collection of high-volume websites that will all connect to Roamfree.com.

“Consumers can already search more than 100,000 accommodation providers via our website but we’re aiming much higher than that. We want to offer at least one million accommodation providers and with APN’s support, we’re a big step closer to making this a reality.”

Mr Smith said that an inventory on that scale would make Roamfree.com the largest global accommodation search engine in the world.

Roamfree’s technology would also feed information on room availability to last-minute websites and the websites of all major travel agents, visitor centres and automobile clubs.

Roamfree aims to establish an unrivalled network of online tourism solutions that help tourism operators such as hotels, resorts, motels and apartments meet the increasing demand for up-to-the-second online information on room availability, rates, packages and reservations.

Tony Smith, the founder of BreakFree Resorts, established Roamfree in 2006.

Originally published as APN buys $20m stake in Roamfree