Post-scandal
Following the fraud debacle, Cendant began selling businesses to reduce its debt and repair the financial damage caused by the accounting scandal.[30] In 1998 the company sold Hebdo Mag, a publisher of classified advertising publications, for $450 million to a management buyout group.[31][32] In 1999 it sold its consumer software division, Cendant Software (consisting of Blizzard Entertainment, Davidson & Associates, Knowledge Adventure, and Sierra On-Line), to French publisher Havas for $770 million.[31][33]
By 2001, Cendant was again in acquisition mode.[34] It re-acquired the operations of Avis Rent a Car for $937 million.[35][36] It made moves towards building a major online travel portal by acquiring Galileo International for $2.9 billion,[37][38] and Cheap Tickets for $425 million.[39][40] It entered the timeshare sales and management business by buying Fairfield Communities for $690 million,[41][42]
In 2004, Cendant began a series of moves to simplify its business and focus on its core areas of real estate and travel.[46]
As part of this strategy, several non-core businesses were sold or spun off. In June 2004, Cendant sold Jackson Hewitt for $638 million through an initial public offering.[47] In January 2005, Cendant spun off its mortgage and fleet management businesses as PHH Corporation.[48][49] The next month, Cendant sold its Wright Express division, a provider of fleet cards, for $1.03 billion through an initial public offering.[50] In October 2005, Cendant sold its marketing services division, including its membership shopping programs, to Affinion Group, a vehicle of Apollo Management, for $1.8 billion.[51][52]
Meanwhile, proceeds from these sales were used for acquisitions to expand Cendant's core businesses. In November 2004, Cendant purchased Orbitz, the third-largest travel booking site in the U.S., for $1.2 billion.[53][54] In December 2004, Cendant consolidated its control of the Ramada name by buying out Marriott International's stake in the hotel brand.[55][56] In February 2005, Cendant acquired Ebookers, the second-largest travel booking site in Europe, for $350 million.[57][58] In April 2005, Cendant acquired Gullivers Travel Associates, a British seller of travel packages and wholesale hotel nights, for $1.1 billion.[59]
