Today, Corporate Travel Management Limited (CTM) (ASX code: CTD) announced it has entered into an agreement to acquire Texas-based Corporate Travel Planners Inc (CTP), a company specializing in corporate travel services, with a focus on the University and Education sector. Subject to customary conditions precedent, the acquisition will become effective from 1 January 2020.
CTP is a significant provider of travel services to both the university and corporate sectors in the USA, based in San Antonio, Texas
Initial consideration is USD18.0m (AUD26.5m1), representing approximately 6x pro-forma FY20 NPBT with consideration consisting of approximately 10% CTD stock (to be issued in accordance with the agreement) and 90% cash.
Further maximum contingent consideration of USD18.0m (AUD26.5m1) capped, subject to achievement of future profit hurdles.
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