Flight Centre acquires French corporate travel business
Written on the 1 July 2019 by Matt Ogg
Flight Centre (ASX: FLT) has taken full ownership of Paris-based corporate travel group 3Mundi, bringing around 170 million euros ($275 million) in annual total transaction value (TTV) under its global umbrella.
In 2017 Flight Centre took a 25 per cent stake in the company, and yesterday's acquisition was based on the terms of a put-call option included that agreement.
The two companies have worked together since 2015 when 3Mundi became part of Flight Centre's FCM Travel Solutions network as an independent licensee for the markets of France and Switzerland.
"France is an important business travel hub globally and is now the world's sixth largest corporate travel market, making it a significant future growth opportunity for our company," says FLT managing director Graham Turner.
"We have worked closely with the 3Mundi team since 2015 and believe that this extension of our relationship will unlock further benefits both for 3Mundi's local customers and for FCM customers in general and help us capitalise on this opportunity."
Founded in 2006 by Jordy Staelen and Simon Renaud, 3Mundi now employs 220 people across its offices in Paris and Geneva.
Managing director Solenn Le Brazidec will continue to oversee 3Mundi's day-to-day operations and has been appointed FCM Travel Solutions' general manager for France and Switzerland.
"Since we first worked with FLT in 2015, we realised that we shared the same values, the same pioneering mindset and the same ambitions for the business," says Le Brazidec..
"The incredible opportunity to wear the FCM brand for four years already has allowed us to grow and triple our turnover," she says.
"By now becoming a subsidiary of FLT, we have a stronger global offering for our customers, a greater technological integration and more opportunities for growth."
Flight Centre's corporate travel footprint in Europe now includes the UK, Germany, France and the Netherlands, which all rank among the world's 15 largest corporate travel markets, as well as Ireland, Switzerland, Sweden, Norway, Finland and Denmark.
FLT also operates a technology business in Spain, where its Sam :] mobile app and other bespoke products have been developed at its lab in Barcelona. The company also has labs in Boston, Washington DC, Bangkok and Brisbane.
Globally, FLT's corporate businesses generated $4.2 billion in TTV in the first half, representing around 37 per cent of the group total.
Today's announcement follows a 25 per cent investment in Washington DC-based The Upside Travel Company in April this year.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Author: Matt Ogg