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

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 a part of ASX listed Helloworld, a leading Australian & New Zealand travel distribution company, comprising retail travel networks, corporate travel management services, destination management
services (inbound), air ticket consolidation, wholesale travel services, and online operations.
 
The Acquisition is highly complementary to CTM’s existing Australian and New Zealand (“ANZ”) corporate travel management operations, and adds industry verticals which are expected to perform strongly as the recovery from COVID-19 continues.

Completion of the Acquisition is expected to occur in Q1 2022 and is subject to a number of conditionsprecedent including regulatory approval

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.

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