CORPORATE Travel Management (CTM) said its acquisition of Lotus Travel Group (TD breaking news) will see it become the largest travel management company in Hong Kong servicing Greater China.
Managing director Jamie Pherous declared with Lotus as a key part of its Asia business, “we will become a leader in the Greater China market and will be well positioned to enhance our client offering, technology and expertise in the market”.
Effective 02 Oct, CTM will take a 75.1% stake in Lotus while CTM Asian partner Ever Prestige Investments will acquire the remaining 24.9% in a deal worth A$50 million, approximately 10 times Lotus’ CY17 EBITDA.
Lotus employs 400 staff in offices in Hong Kong and China and CTM told its investors in an announcement on the stock exchange that both companies “share a similar culture and business mix across corporate, wholesale (B2B), MICE & events”.
CTM said the purchase would create “optimum scale” and the potential for the businesses to capitalise on best practice.
The company plans to overlay CTM technology and business systems and processes “to make Lotus and its people more effective and support longer-term sustainable growth”.
It also predicted technology led synergies should lead to materially improved people effectiveness, profits and growth over a two- to three-year cycle.
Source: Travel Australia