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.