Corporate Travel Management (ASX: CTD) has continued its push into the Asian market with the $50 million acquisition of a majority stake in a Hong Kong-based travel company.
CTM has acquired 75.1 per cent of Lotus Travel Group Limited, a leading travel company in Hong Kong, in a deal worth $50 million.
The deal makes CTM the largest travel management company in Hong Kong servicing Greater China, with a combined total transaction value approaching $2.5 million.
CTM's partners in Asia, Ever Prestige Investments Limited, will acquire the remaining 24.9 per cent of Lotus.
CTM managing director Jamie Pherous says the two companies have a strong connection culturally, enabling the integration process to be seamless.
"Lotus is a long standing and highly regarded travel leader in Hong Kong," says Pherous.
"They meet our strict acquisition criteria and, like CTM Asia, are leaders in travel in the region and enjoy high client and staff retention."
"We are delighted to have Lotus become a key part of our Asian business. Together, we will become a leader in the Greater China market and will be well positioned to enhance our client offering, technology and expertise in this market."
Chairman and CEO of Lotus, Patrick Kong, says the acquisition by CTM is a perfect fit.
"We have known the CTM Asia leadership team for many years and have watched CTM build a very strong growth business based on highly personalised service delivery with the best-in-class technology solutions."
"We consider that CTM is an excellent fit to enhance our service offering to both current and future clients, while providing exciting new career opportunities for our employees that comes through growth."
Shares in CTM are down 0.07 per cent to $27.58 per share at 4.10pm AEST.
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