International corporate services company, Hogg Robinson Group (HRG), has announced a deal to purchase the remaining 42 per cent shareholding it does not own in technology payment specialist Spendvision.
HRG is reportedly paying £8.5m in cash and issues shares worth another £5m.
David Radcliffe (pictured), Chief Executive of HRG, said: “Since we made our original investment in the business in 2004, we have seen the demand from the corporate travel market grow for ‘end to end’ solutions. As clients continue to focus on saving money and working more efficiently, there is an increasing need to bring the processes of booking travel, payment and expense management together. The natural synergies that exist between HRG and Spendvision present a real opportunity.”
Shane Bruhns, previously Chief Operating Officer and who will be appointed Chief Executive Officer of Spendvision, added: “My colleagues and I at Spendvision are delighted with the news of our new ownership. HRG has been a staunch investor in our business over the years and this new development with enable us all to work even more closely together to deliver continued excellence of service to our clients around the world.”
The deal, analysts say, will help HRG persuade the market that it is not just a travel group, but a business that helps corporates with all their travel needs, be it booking, paying and organising conferences.
The move should also mean the business becoming less cyclical as one purely reliant on the frequency of business travel.
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