Rearden Gains $40M In Funding, Lays Off 15 Percent Of Workforce

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Rearden Gains $40M In Funding, Lays Off 15 Percent Of Workforce

By Seth Harris

SEPTEMBER 24, 2009 -- Rearden Commerce has raised an additional $40 million from JPMorgan Chase's private equity arm One Equity Partners in a transaction that closed last Friday. Meanwhile, Rearden earlier this week reduced its workforce by 15 percent, according to a spokesperson.

The new funds give Rearden a total of $240 million in investment capital, which also primarily comes from American Express, Empire Capital Partners, Foundation Capital, JPMorgan Oak Investment Partners and Palo Alto Investors.

In May 2008, the group of corporate, private equity and venture capital investors gave Rearden $100 million. At the time, Rearden chairman and CEO Patrick Grady said all parties involved in that round were minority investors. Amex first paid $22.5 million for a minority share in Rearden in 2006.

One Equity Partners managing director Greg O'Hara gains a seat on Rearden's board. OEP has been a growing private equity player in the corporate travel industry. It owns a 45 percent stake in Carlson Wagonlit Travel and has stakes in Travel Leaders Group and Travelport. O'Hara has a seat on the boards of those companies as well.

O'Hara is no stranger to the travel industry. Prior to his role at OEP, he served as a board member and executive vice president of corporate planning and development at Worldspan. He also had a stint as Sabre senior vice president of global services.

In November 2008, Foster City, Calif.-based Rearden laid off about 10 percent of its employee base, or about 40 employees.

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