MELBOURNE, AUSTRALIA: Corporate Travel Management (ASX: CTD) has entered into a binding agreement to acquire 100% of Helloworld Travel (ASX:HLO) corporate and entertainment travel business in Australia and New Zealand for an enterprise value of $175 million.
Completion of the acquisition is expected to occur in Q1 2022 and is subject to a number of conditions precedent including Australian Competition and Consumer Commission clearance, amongst others.
Helloworld Corporate is a part of ASX listed Helloworld, a leading Australian & New Zealand travel distribution company, comprising retail travel networks, corporate travel management services, destination management services (inbound), air ticket consolidation, wholesale travel services, and online operations.
Helloworld Corporate operates via the key brands QBT, AOT Hotels, TravelEdge and Show Group in Australia and APX and Atlas Travel in New Zealand. Its major customers include large high-quality blue-chip clients, including state and federal governments and agencies across ANZ.
The business generated pro-forma EBITDA of approximately $22 million in FY19 and approximately $1.6 million\ during the first quarter of FY22.
Jamie Pherous, Corporate Travel Management Founder and Managing Director, 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’s CEO and Managing Director, said “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.”