CTM to buy two agencies

Daisy Melwani

Corporate Travel Management have entered binding agreements to purchase Tasmanian-based Andrew Jones Travel and UK-firm Redfern Travel.

CTM will pay $69 million, in initial consideration, for Redfern Travel, with a maximum consideration capped at $86.2 million and $5.6 million for Andrew Jones Travel.

The acquisitions will be funded by a $71 million capital raising.

The combined purchases are expected to contribute $7 million EBITDA from February to June 2017, and $17 million EBITDA on an annual basis, reports.

The deal has upped CTM’s FY17 underlying EBITDA guide to $92 million to $97 million, up 33% or 41% on FY16 EBITDA.

Both Andrew Jones Travel and Redfern Travel are significant providers of travel services to government and corporate sectors in their regions.