Corporate Travel Management (CTM) has continued to expand in Asia by acquiring a majority stake in Hong Kong-based Lotus Travel Group for £28 million.
The deal will see CTM become the largest travel management company in Hong Kong serving Greater China, with a combined total transaction value approaching £1.4 billion.
The purchase of 75.1% of Lotus will take effect from October 2 while CTM’s partners in Asia, Ever Prestige Investments, will acquire the remaining 24.9% through CTM Asia.
The take over creates “optimum scale” for the combined entity to leverage technology, support costs and supplier relationships across a wider base to best enhance long-term sustainable growth in the Asian region, according to the Australian TMC.
The acquisition will contribute about £2.25 million earnings before interest, tax, depreciation and amortisation (EBITDA) over nine months trading to CTM’s 2019 annual results.
Lotus has operated for more than 60 years and is described as a market leader in Hong Kong across the corporate, B2B, wholesale and MICE markets.
It employs 400 staff and has offices in Hong Kong and Greater China.
Chairman and CEO, Patrick Kong, said: “We have known the CTM Asia leadership team for many years and have watched CTM Asia build a very strong growth business based on highly personalised service delivery with best-in-class technology solutions.
“We consider that CTM is an excellent fit to enhance our service offering to both current and future clients, while providing exciting new career opportunities for our employees that comes through growth.”
CTM managing director, Jamie Pherous, said the two firms had a great understanding of each other’s culture and leadership teams, which would allow for a seamless integration process.
“Lotus is a long standing and highly regarded travel leader in Hong Kong,” he said. “They meet our strict acquisition criteria and, like CTM Asia, are leaders in travel in the region and enjoy high client and staff retention.
“We are delighted to have Lotus become a key part of our Asian business. Together, we will become a leader in the Greater China market and will be well positioned to enhance our client offering, technology and expertise in this market.”
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