Australia-based Corporate Travel Management has entered an agreement to buy the Australian and New Zealand corporate and entertainment businesses of rival Helloworld for A$175 million (US$124.9 million).
CTM said the acquisition is “highly complementary” to its existing corporate travel operations in Australia and New Zealand and will add industry verticals that are expected to perform strongly as the recovery from Covid-19 continues, such as travel management for government, entertainment, film, music and arts customers, as well as conferences and events in New Zealand.
The deal will be funded by a combination of A$100 million cash and $75 million of CTM shares to be issued to Helloworld, and the parties expect it to close in the first quarter of 2022, subject to regulatory approval.
Helloworld Corporate is a part of Helloworld, an Australian and New Zealand travel distribution company comprising retail travel networks, corporate travel management services, destination management, air ticket consolidation, wholesale travel services and online operations. It operates via the brands QBT, AOT Hotels, TravelEdge and Show Group in Australia and APX and Atlas Travel in New Zealand.
In the 2019 financial year, Helloworld Corporate generated earnings of around A$22 million and around A$1.6 million during the first quarter of the current financial year, according to CTM.
Jamie Pherous, founder and managing director of CTM, in a statement said: “We are privileged to be able to acquire these businesses and are excited to be the custodian of such a high-quality portfolio of clients. We feel strongly that we will be able to continue to deliver strong product and service outcomes to their customers with our dedicated focus.”
Andrew Burnes, Helloworld CEO and managing director, in a statement added: “We believe that CTM is the right home for our corporate and entertainment travel clients in the future. We regard CTM as an excellent operation and know they have particularly high standards of service and proprietary customer technology in the Australian and New Zealand markets and around the globe.”
CTM acquired U.S.-based Travel and Transport in 2020, including the Radius Travel network, creating a $7.6 billion global TMC.
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