Retail travel franchise Helloworld Travel (ASX:HLO) has agreed to acquire travel agency Magellan Travel Group for $32.5 million.
The transaction will be funded through 65 per cent in existing facilities and 35 per cent in shares.
Helloworld Travel CEO Andrew Burnes said adding Magellan Travel Group to the company will improve the scale of its operations nationally.
Following the completion of the transaction, which is expected to occur in January 2018, Helloworld Travel will have more than 2,300 members and 1,800 retail and corporate agencies.
The company’s total transaction value is expected to increase by about $900 million.
Shares in Helloworld Travel (ASX:HLO) last traded 0.42 per cent lower to $4.77.