Leading Australian travel provider Corporate Travel Management (CTM, ASX: CTD) is expanding its global footprint with the acquisitions of UK-based Redfern Travel and Australian-based Andrew Jones Travel.
The acquisition of Redfern Travel will make CTM one of the top seven corporate travel management companies in the United Kingdom.
CTM Managing Director Jamie Pherous said the Redfern Travel transaction would allow CTM to build and leverage scale, and is expected to take its consolidated European Total Transactional Value (TTV) to GBP500-550 million in the next financial year.
“Redfern Travel’s key competitive advantage is its proprietary, automated end-to-end system, which processes more than 95 per cent of all transactions online, creating highly scalable operation,” Jamie Pherous said.
“After working with their management team through this process it became very clear that Redfern are a complementary business to CTM in the region; they possess a highly experienced and passionate management team, an innovative culture that has created some of the best end-to-end automation I have ever seen in our industry, and together we will create new opportunities to grow in the UK and European markets.” said Pherous.
Redfern Travel CEO Mark Bowers said the partnership was a natural fit, as CTM’s focus on innovation aligned with Redfern’s strategic vision, and would help to accelerate the development of its technology.
“We have had many suitors for Redfern over the years, so it is refreshing to be working with a like-minded company who value innovation and customer service as much as we do,” Mark Bowers said.
“Our new relationship with CTM will provide us with the resources to accelerate the development of our technology, products and services, as well as the opportunity to leverage CTM’s increased buying power and scale in our core markets.”
Collectively, the Redfern Travel and Andrew Jones Travel acquisitions are expected to contribute approximately AUD7.0 million EBITDA from February to June, 2017. On an annualised basis, Redfern Travel and Andrew Jones Travel would contribute to CTM approximately AUD17.0 million (approximately GBP10.1 million).
The acquisitions will be funded by a fully underwritten renounceable Entitlement Offer to raise approximately AUD71.1 million (GPB41.2 million). Eligible shareholders will be able to purchase one fully paid ordinary share for every 21 CTM shares that they hold on 19 December, 2016.
CTM is an award-winning provider of innovative and cost-effective travel management solutions to the corporate market. Its proven business strategy combines personalised service-excellence with client-facing technology solutions to deliver a return-on-investment to clients. Headquartered in Australia, the company employs more than 2,200 staff globally and services clients in 83 countries. For more information, visit www.travelctm.com
About Redfern Travel
Redfern Travel is a significant provider of travel services to both the government and corporate sectors in the UK, based in Bradford, northern England.
About Andrew Jones Travel
Andrew Jones Travel is a major Tasmanian travel business servicing the corporate, government and sporting markets, based in Hobart.
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