Corporate Travel Management (CTM) has entered into an agreement to acquire all of Helloworld’s corporate and entertainment businesses in Australia and NZ.
As per the agreement, CTM will pay $175 million to purchase Helloworld Corporate, which includes QBT, AOT Hotels, TravelEdge and Show Group in Australia and APX and Atlas Travel in New Zealand.
“We believe that CTM is the right home for our Corporate and Entertainment travel clients in the future,” Andrew Burnes, Helloworld’s CEO and managing director said.
“We regard CTM as an excellent operation and know they have particularly high standards of service and proprietary customer technology in the Australian and New Zealand markets and around the globe.”
Helloworld Corporate’s major customers include large-high-quality blue-chip clients, including state and federal governments and agencies across ANZ.
QBT currently holds a contract with the department of finance for whole-of-government travel management services.
“We are privileged to be able to acquire these businesses and are excited to be the custodian of such a high-quality portfolio of clients,” Jamie Pherous, CTM’s founder and managing director, said.
“We feel strongly that we will be able to continue to deliver strong product and service outcomes to their customers with our dedicated focus.”
The acquisition is expected to be completed in the first quarter of 2022, subject to ACCC approval.
According to CTM, the acquisition will build on the business’s existing core as a global specialist corporate travel management firm, bringing access to new verticals and diversification of its client base.
Helloworld Corporate generated a pro-forma EBITDA of approximately $22 million in FY19 and approximately $1.6 million during the first quarter of FY22.