CORPORATE TRAVEL LANDS IN NORTHWEST USA
Written on the 13 June 2014 by Laura Daquino
CORPORATE Travel Management (ASX: CTD) is growing its United States presence, acquiring a large travel company based in the Pacific Northwest and Alaska.
CTD says the acquisition, effective July 1, is born out of strategic alignment with USTravel (UST), a known leader in corporate travel management in the region with an 80 per cent corporate client base.
Managing director Jamie Pherous (pictured) says the UST acquisition will also add value to and diversify CTD’s current USA base, granting the company greater access to growing cities and US government travel.
Seattle and Alaska in particular have been highlighted as promising new locations on the CTD map, Seattle noted as an emerging technology hub and Alaska’s oil and gas industries complementing operations in cities such as Perth and Singapore.
“USTravel possess all the qualities that we look for, having a great service reputation, a dedicated team and great management,” says Pherous.
“The combination with our successful and well established offices in the central and southern USA will allow us to better leverage our combined buying power, client facing solutions, and support expertise moving forward.”
The USA is one of 15 countries CTD operates out of and a market the company has been actively pursuing in recent years, an acquisition of Texan and Louisiana-based business TravelCorp taking place last year.
The base consideration for the acquisition is USD$5.25 million, a combination of cash and CTD shares.
CTD reiterated a full year guidance of EBITDA in the range of $27 million to $28 million with the announcement of the acquisition.