Corporate Travel Management acquires agency to boost SME division
Written on the 1 May 2018 by Business News Australia
With a view to expanding its SME and corporate and events segment, Corporate Travel Management (ASX: CTD) has acquired the SCT Travel Group, trading as Platinum Travel Corporation.
The buyout represents a base consideration of $5 million via a mixture of cash and stock, funded entirely from short term cash flow.
The acquisition, effective as of 1 July, includes SCT's Corporate and Events business in Queensland and New South Wales.
One of SCT's founders Greg McCarthy will join the Corporate Travel Management (CTM) executive team as the new CEO of its Australia and New Zealand division, based in Sydney.
McCarthy's experience spans three decades in the travel industry and CTM says his strong reputation and "highly valued leadership skills" will be an asset to the group.
CTM, founded by entrepreneur Jamie Pherous (pictured), says the acquisition is a perfect fit to achieve future growth and development.
"[SCT Travel Group is] a renowned Australian boutique agency that has an excellent reputation for customer service and a culture very similar to CTM," says the company.
"A key initiative of the CTM ANZ FY19 business plan will be expanding the SME corporate and events segment, and the SCT team are well placed to enhance the support and success of both initiatives."
CTM currently holds a 15 per cent share of the Australia and New Zealand market and, prior to 2021, it plans to grow its merger and acquisition (M&A) footprint further.
Its plan is to execute M&A opportunities that add scale, niche or geography to the portfolio.
The acquisition of SCT will have no bearing on CTM's FY18 results.
Business News Australia
Author: Business News Australia