Corporate Travel Management (ASX: CTD) has successfully acquired a Texas-based travel services provider for USD$18 million (AUD$26.5 million), bolstering its position as a Top 10 player in North America.
The transaction to buy Corporate Travel Planners Inc (CTP) comprises 90 per cent cash and 10 per cent CTD stock, and is expected to contribute AUD$2.2 million to FY20 results.
The deal was initially announced on 24 December and opens doors for Corporate Travel Management (CTM) in the niche university and education travel space.
"CTP will be highly complementary to our organic expansion strategy and we believe that combined, we will forge a strong service proposition to the University and Education sector that will contribute strongly to the company's future growth in North America," CTM managing director Jamie Pherous said when the deal was slated.
The acquisition is expected to increase CTM's North American annualised total transaction value (TTV) to more than USD$1.5 billion (AUD$2.2 billion), helping the group leverage its buying power and investment in technology.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Get our daily business news
Sign up to our free email news updates.