- Helloworld Travel will acquire the TravelEdge Group for $28 million
- The $28 million will be funded to a new bank facility
- The deal will help Helloworld expand its corporate and education travel sectors
Helloworld Travel will acquire one of Australia’s largest privately owned travel companies – TravelEdge Group, for $28 million.
TravelEdge offers a range of corporate travel services that range from travel management solutions, academic travel services, event & group planning and delivery, holiday and leisure services.
The $28 million will be funded to a new bank facility. There is potential for additional costs to the vendor in financial year (FY) 2021 if defined earnings thresholds in FY20 are satisfied. The additional funds are not considered material.
TravelEdge operates through six divisions; TravelEdge Corporate, Communico Service, TravelEdge Events, Business Travel by STA, Traveledge Holidays and Granted Worldwide.
TravelEdge Corporate offers a full range of end to end solutions for corporate travel market.
Communico Services offers tailored in-house travel management solutions for corporate clients.
TravelEdge Events offers event management, groups travel, conference and meeting services.
TravelEdge Holidays offers leisure travellers exclusive offers and deals.
Granted Worldwide offers travel prizes and employee incentive programs for corporate clients.
Helloworld CEO Andrew Burnes is pleased with the addition of TravelEdge to the company.
“With nearly 20 years’ experience, TravelEdge is a highly respected travel management company (TMC)that generated over $300 million of total transaction value(TTV) in FY19, he said.”
“We will continue to provide outstanding services to TravelEdge’s many clients across the corporate and education sectors in Australia.”
The deal will help Helloworld expand its corporate and education travel sectors and the business complements its exisiting corporate operations in Australia and New Zealand.
With Helloworld’s existing TMC businesses which include; QBT, Show Travel, Inspire, AOT Hotels and in New Zealand APX, the company is expecting an annual TTV of $1.5 billion.
Helloworld Business Travel network of corporate agencies in Australia and New Zealand has TTV of over $850 million,
“This takes the total corporate business in our wholly owned operations and our business network members in Australia and New Zealand to over $2.4 billion in FY20,” Andrew added.
Helloworld is a leading Australia and New Zealand travel company and has over 2,200 staff around the globe.
TravelEdge CEO Kim Wethmar says this deal is will benefit customers and the business.
“I’m very pleased that TravelEdge will now be a part of Helloworld Travel Limited and that she can see significant benefits for customers and opportunities for employees,” she said.
Kim joined TravelEdge four years ago and will continue to run the business from its Sydney Headquarters.
The company’s TMC business, QBT recently signed a corporate travel contract with Foxtel and News Corp Australia.