Helloworld acquires TravelEdge Group for $28 million

Company News

by Anna Napoli

Helloworld Travel (ASX:HLO) is set to snap up Australia’s largest privately-owned corporate travel manager, the TravelEdge Group.

The consideration for the acquisition is $28 million which will be funded from a new bank facility.

The travel company expects the deal will be earnings accretive from FY20. The consideration represents an FY19 EBITDA earnings multiple of approximately six times. TravelEdge generated over $300 million in total transaction value in FY19.

Helloworld says the deal will allow it to expand in the corporate and education travel sectors.

Shares in Helloworld are trading 2.37 per cent higher at $4.75.

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.