Canada Pension Plan Investment Board buying half share of Hotelbeds Group

The Canada Pension Plan Investment Board and European private equity firm Cinven have signed a deal to buy travel services company Hotelbeds Group in a deal valued at 1.165 billion euros,or roughly $1.65 billion Cdn.

Under the deal, CPPIB and Cinven will take equal stakes in the company being acquired from travel and tourism company Tui Group.

Hotelbeds offers hotel rooms and services to tour operators, travel agencies, corporate clients and consumers.

The company is based in Spain andemploys 6,150 people around the world.

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Shane Feeney, head of direct private equity at CPPIB, called Hotelbeds a unique opportunity.

"Backing a best-in-class management team, with an exceptional track record of organic growth that we will support in driving industry consolidation in the coming years, provides a terrific opportunity for CPPIB," Feeney said in a statement Thursday.

The deal is expected to close by the end of September