Amadeus IT Group, which is a subsidiary of Amadeus IT Holding, has reached a deal for the complete sale of travel agency website Opodo. The sale will be to Axa Private Equity, which is part of French insurer AXA, and Permira, the UK investment fund. This is a move to create a top online booking service for Europe.

Opodo was set up by a consortium of European carriers in 2001, including Iberia, British Airways and Air France, whom all still hold minority stakes in the company. It is a direct competitor to US travel agency websites Orbiz Worldwide, Expedia Inc and Priceline.com Inc.

This agreement values Opodo at about €450 million, representing a multiple of 11.7 times the EBITDA (earnings before interest, tax, depreciation and amortization) of the company last year. However, after operation costs and adjustments for working capital position and cash reserves, the total sum of the transaction will be about €500 million, according to a regulatory filing. The filing also noted that Amadeus expects to book €275 million in capital gains, before tax, through the sale.

The deal also includes a 10-year commercial agreement between Amadeus and GoVoyages, eDreams and Opodo to provide them with GDS services (ticketing and reservation information). GoVoyages and eDreams are already controlled by AXA Private Equity and Permira Funds respectively.

The Spanish travel reservations group has controlled Opodo since 2004, but they have never viewed it as a strategic holding, as it is the smallest of their 3 business, bringing in only 4% of the group’s total revenue. The company was advised by JP Morgan for the transaction, which is still subject to competition regulators’ approval.