Corporate Travel Management expanded its footprint with the acquisitions of UK-based Redfern Travel and Andrew Jones Travel in Tasmania.
Its shares jumped 4.9% to $16.87.
The GBP40 million (AUD69.0 million) acquisition of Redfern Travel will make the Australian company one of the top seven corporate travel management companies in the UK.
“Redfern Travel’s key competitive advantage is its proprietary, automated end-to-end system, which processes more than 95% of all transactions online, creating a highly scalable operation,” says Corporate Travel’s managing director Jamie Pherous.
He says the $5.6 million acquisition of 30-year-old Andrew Jones Travel in Tasmania will cement Corporate Travel Management as the second largest corporate travel management company in Australia and help expand in the government and sporting industries.
Redfern Travel and Andrew Jones Travel will contribute about $17 million.
The company has raised its full year EBITDA (earnings before interest, tax, depreciation and amortisation) guidance to between $92 million and $97 million, up from $85 million to $90 million.
The acquisitions will be funded by an equity raising of $71.1 million at $15 a share.