Big consolidation in the business travel sector, with Corporate Travel Management (CTM) snapping up Travel & Transport for $200 million.
The acquisition by Australia-based CTM is being touted as a move to create "one of the world's leading global, mid-market corporate travel managers."
Total transaction volume for the two businesses in 2019, pre-pandemic, was $7.6 billion.
The acquisition of U.S.-based T&T includes Radius Travel, which it took full ownership of in 2018.
Subscribe to our newsletter below
CTM's move to establish a larger presence in the U.S. is the largest deal in the corporate travel world before the outbreak of coronavirus decimated business travel and every other segment of the industry.
T&T, created in 1946, will be rebranded to CTM following completion of the deal.
"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 says in a statement.
The company says it has a strong liquidity position going into the deal, with zero debt and $88 million of net cash on the books.
It also has access to an undrawn finance facility of $127 million.
The integration of T&T into the CTM portfolio will "happen quickly" as there is reduced customer activity, giving the combined businesses the ability to emerge from the COVID-19 pandemic "in a strong competitive position."
T&T's CEO, Kevin O'Malley, will become CEO of CTM North America.
Maureen Brady, who will be chief operating officer of the unit, says: "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."