April 25, 2024

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UK private equity firm CVC Capital Partners is reportedly inching closer to taking over more than half of the stake of With Innovation, a Seoul-based startup that operates an accommodation booking app Yeogi Eottae.

CVC Capital Partners is said to have been in talks to buy the controlling stake from the startup’s shareholders, including ex-CEO Sim Myeong-seob who holds over 45 percent stake. 

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The Luxembourg-based private equity house has reportedly valued the startup at roughly 300 billion won ($252 million) and is planning to raise 100 billion won in capital by issuing new stocks.

This would mark the first deal in Korea since CVC Capital Partners Korea Managing Director Chung Myung-hoon took office in 2016.

With Innovation has received funding from multiple investors, including JKL Partners and Korea Investment Partners. Sim, who stepped down in November 2018, has been cleared of charges of failure to prevent the circulation of explicit contents.

With Innovation is one of the major booking app operators in Korea, along with Yanolja.

This comes two years after CVC Capital Partners bought Swedish online travel agency Etraveli for 508 million euros ($560.5 million). CVC Capital Partners is the sixth-largest private equity house by assets under management, which stands at $85 billion.

By Son Ji-hyoung (consnow@heraldcorp.com)