Infospace.com Will Integrate Leisureplanet’s Travel Booking Services into Private Label Solutions That Will Be Offered Across InfoSpace.com’s Affiliate Network
Leisureplanet Holdings Ltd. (Nasdaq: LPHL) and InfoSpace.com (Nasdaq: INSP), a leading Internet infrastructure company, today announced that they have signed an agreement under which Leisureplanet, an Internet travel services provider that is 81%-owned by Leisureplanet Holdings, will become the exclusive provider of online travel booking services to InfoSpace.com and its affiliate network. InfoSpace.com’s affiliate network consists of more than 1,800 websites and Internet appliances reaching more than 85% of all Internet users.
Under the terms of the agreement, InfoSpace.com will receive cash compensation, as well as warrants to acquire approximately 720,000 shares, or approximately 10%, of Leisureplanet Holdings common stock over an 18-month period in exchange for integrating Leisureplanet’s travel booking engine services and other related travel content into the InfoSpace.com service offering. The companies will also cooperate to develop solutions that will allow users of remote access devices such as cell phones, personal digital assistants (PDAs) and digital pagers to book their travel arrangements through these devices.
Clive Kabatznik, Chief Executive Officer of Leisureplanet Holdings, said: “This is an enormous step forward for the Leisureplanet business and its parent company. Our alliance with InfoSpace.com, a leading provider of private label solutions for content, community and commerce, further validates the quality of our travel services and provides a driver for future growth. We believe that this agreement could bring Leisureplanet’s booking engine as many as 42 million visitors over the next three years and will greatly advance us towards our goal of becoming a major player in the global online travel services industry. Moreover, we are delighted that InfoSpace.com will potentially become an equity partner in our company, which is an important step towards our primary goal of building long-term value for our shareholders.” Naveen Jain, Chief Executive Officer of InfoSpace.com, said: “This arrangement with Leisureplanet demonstrates the value that the InfoSpace.com network brings to companies that wish to gain rapid access to a significant number of Internet users. Expanding our relationship with Leisureplanet to this level will allow us to provide a topnotch travel service to our affiliates and their users.”
Pierre Kleinhans, Leisureplanet Chief Executive Officer, said: “We believe our alliance with InfoSpace.com will provide Leisureplanet with a strong presence in InfoSpace.com’s affiliate network, which will allow us to access the majority of online consumers in the United States and Canada. Moreover, InfoSpace.com’s strong affiliate network in the United Kingdom and its international growth strategies are complementary to our global distribution objectives. We believe that the amount of targeted distribution opportunities throughout the InfoSpace.com network would be hard to replicate with any other single provider and, as such, that this agreement will allow powerful new reach for the Leisureplanet brand.” About InfoSpace.com