- Corporate Travel Management (CTD) has agreed to acquire Texas-based Corporate Travel Planners for US$18 million
- This strategic buy will bring CTD’s North American segment annualised total transaction value to over US$1.5 billion
- This further establishes CTD as a top 10 travel management provider in the region
- Company shares are up a slight 0.14 per cent, with shares trading for $20.76 each
Corporate Travel Management (CTD) has agreed to acquire Texas-based Corporate Travel Planners (CTP) for US$18 million (A$26.5 million).
Corporate Travel Planners specialises in corporate travel services with a focus on provision for the University and Education sector in the U.S.
The company considers the acquisition of CTP to be highly strategic because it delivers various benefits to its North American segment.
It’s believed that the acquisition will increase CTD’s North American segment annualised total transaction value (TTV) to over US$1.5 billion (A$2.2 billion). This further establishes the company as a top 10 travel management provider in the region.
Furthermore, it will position it for long-term organic growth and leverage its buying power and technology investment.
CTD considers the University and Education sector in North America to be complementary to its value proposition. The company has seen the success in this sector for the Australia and New Zealand regions and wants to mirror that success.
“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,” Managing Director Jamie Pherous said.
The acquisition will be effective from January 1, 2020, and its six-month pre-tax contribution to the 2020 financial year results is expected to be US$1.5 million (A$2.2 million).
Company shares are up a slight 0.14 per cent, with shares trading for $20.76 each at market close.