The $175 million acquisition of Helloworld Travel’s (ASX: HLO) Australia and New Zealand corporate and entertainment arm by Corporate Travel Management (ASX: CTM) has been completed today.
The deal brings together CTM with Helloworld Corporate, and was struck to liberate capital for HLO so it can tap into what it says is pent-up consumer demand for leisure travel services.
The acquisition is funded by the proceeds from CTM’s $100 million capital raise, plus the issuance of 3.6 million new CTM shares to Helloworld.
CTM says the integration of Helloworld’s corporate and entertainment brands, including QBT, TravelEdge, APX, Atlas Travel, AOT Hotels and Show Group, will commence immediately.
“The acquisition positions CTM as the travel management provider for more than a quarter of ASX 200 listed companies and further expands its service and technology offering in the government and education sectors,” CTM said.
HLO CEO and managing director Andrew Burnes said the sale of the company’s corporate travel arm is timed well with the rebound of the tourism sector from COVID-19 disruption.
“As leisure demand continues to rebound from the COVID-19 disruption, HLO is very well positioned to focus on emerging opportunities in this market,” Burnes said.
“And as a major shareholder in CTM and with our Helloworld Business Travel agency network, HLO will also continue to participate in the corporate travel market in Australia.
“We wish to thank our team at QBT, TravelEdge, Show Travel, APX and Atlas Travel. They have made this business what it is, and we wish them well as they move across to CTM.”
Shares in CTM are up 0.36 per cent to $1.38 per share at 10.04am AEDT.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support