Australian travel provider Corporate Travel Management has announced the acquisition of UK-based Redfern Travel, as well as that of Australian-based Andrew Jones Travel.
The company says its acquisition of Redfern Travel will make CTM one of the top seven corporate travel management companies in the UK.
CTM acquired Chambers Travel Group in the UK back in 2015.
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 over £500m in the next financial year.
“Redfern Travel’s key competitive advantage is its proprietary, automated end-to-end system, which processes more than 95% of all transactions online, creating highly scalable operations,” said Pherous.
“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.” Pherous added.
Redfern Travel CEO Mark Bowers described the partnership as a natural fit. “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,” he 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 A$7m (£11.82m) EBITDA from February to June, 2017. On an annualised basis, Redfern Travel and Andrew Jones Travel would contribute to CTM approximately A$17m (£10.1m).
The acquisitions will be funded by a fully underwritten renounceable Entitlement Offer to raise approximately A$71.1m (£41.2m). 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 headquartered in Australia, employs more than 2,200 staff globally and services clients in 83 countries.
Redfern Travel is a significant provider of travel services to both the government and corporate sectors in the UK, and is based in Bradford.
Andrew Jones Travel is a major Tasmanian travel business servicing the corporate, government and sporting markets, based in Hobart.