Corporate Travel (ASX:CTD) to acquire Helloworld's corporate travel business

Company News

by Lauren Evans

Corporate Travel Management (ASX:CTD) is set to acquire Helloworld's corporate travel business with an enterprise value offer of $175 million on a cash and debt free basis.

The deal will be structured with a $100 million cash payment and $75 million in Corporate Travel shares. The cash component will be funded via a fully underwritten $100 million placement and share purchase plan.

Helloworld Corporate is an Australian and New Zealand travel distribution company, comprising retail travel networks, corporate travel and destination management services, air ticket consolidation, wholesale travel services, and online operations.
 
The company said the acquisition is highly complementary to its existing ANZ corporate travel management operations, and adds industry verticals which are expected to perform strongly as the recovery from Covid-19 continues.

Helloworld said its corporate travel business posted normalised EBITDA of $22 million in pre-pandemic FY 2019, which values the deal at about eight times historic normalised EBITDA.

Completion of the acquisition is expected to occur in the first quarter of 2022. 

Shares in Corporate Travel Management (ASX:CTD) are in a trading halt and last traded at $22.29.
 

Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.