Corporate Travel Management Limited
(ASX:CTD) has bought Travizon Travel, a US travel company that has been in business for over 40 years.
CTM will pay $28 million for the business, which will be funded through a 50/50 combination of stock and cash, and will not affect earnings until the 2017 financial year.
CTM says that this transaction will strengthen its presence in the US, as it will operate in over 20 American cities.
The company expects the acquisition to propel it to one of the top 10 travel management companies in the US in just over 4 years.
CTM reported a net gain of $19.15 million at 31 December 2015.
