WHY IT RATES: The companies have a similar view on delivering personalized service and proprietary technology to generate strong returns for clients on their travel investments. -Codie Liermann, Associate Editor
Corporate Travel Management Limited (CTM) has agreed to acquire Travel and Transport, Inc. (T&T) including its Radius Travel business for US$200.4 million, creating one of the world's leading global mid-market corporate travel managers, with combined CY19 global TTV of US$7.6 billion.
Founded in 1946, T&T is a leading US travel management company headquartered in Omaha, Nebraska with large scale operations across the globe. Its geographical footprint and sector exposure are highly complementary, adding US$2.5 billion to CTM's North America CY19 TTV, as well as expanded operations in the UK, Germany and France.
Radius Travel is a global network of corporate travel agencies in more than 100 countries and has a highly successful hotel program, offering highly competitive corporate rates across 44,000 hotels in 160 countries, to enhance CTM's global hotel offering.
Strong cultural alignment is a strategic driver of the acquisition alongside adding significant presence to CTM's North American operations. For North American customers, the enlarged business offers an expanded and highly experienced team and technology suite, bolstered by CTM's strengths in Europe and Asia Pacific. CTM comes into this in a very strong liquidity position with no debt, US$88 million of net cash and an undrawn committed facility of approximately US$127 million.
T&T will be rebranded to CTM, and the combined company will represent a common value proposition of personalized client service excellence and innovative client-facing technology delivering unparalleled return on investment for clients.
T&T's high-quality leadership team will combine with CTM in a seamless structure that will see Kevin O'Malley as CEO North America, Maureen Brady as COO alongside Josh Weiss as CFO and Tim Fleming as President and Integration lead.
Integration is underway and will happen quickly due to the current reduced customer activity, allowing the combined business to emerge from COVID-19 in a strong competitive position.
CTM founder and Managing Director, Jamie Pherous said, "We are excited to bring our two companies together under the CTM umbrella. Travel and Transport has an incredible reputation and a long history of success within the global travel industry, and we have shared views about delivering personalized service and proprietary technology to generate strong returns for clients on their travel investments."
Maureen Brady commented, "The acquisition will give CTM optimal scale in North America to create revenue synergies and new client benefits by leveraging increased buying power and the best of our technology, analytics and customer insights across the wider business. We very much look forward to working as a combined team to ensure our customers and employees receive the best benefits and greatest opportunities."
T&T CEO, Kevin O'Malley said, "Travel and Transport has been in business for 74 years, growing from a one-person operation in Omaha, Nebraska, to one of the largest corporate TMCs in the US.
"We are excited about the opportunities for our people and our clients by becoming part of a growing, world-class TMC. We were very impressed with CTM's technology, in particular the Lightning online booking tool, and CTM's strength in the Asia pacific region. CTM will be a great place for our employees to call home."
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