ASX-listed travel heavyweight Corporate Travel Management Ltd (ASX: CTD) will acquire Queensland’s SCT Travel Group Pty Ltd and its founder, Greg McCarthy.
In an announcement to the ASX Tuesday morning, Corporate Travel Management said it will pay $5 million plus earn-outs to buy SCT Travel, which trades as Platinum Travel Corporation in Queensland.
Corporate Travel Management is a leading multi-billion dollar travel business operating in Australia, Asia and throughout the world.
The company says SCT is a good fit because it has cultural alignment and compliments Corporate Travel Management’s Events and small-medium business corporate strategy.
In addition, the takeover provides an opportunity to expand Corporate Travel’s executive team with SCT’s founder Greg McCarthy taking the reigns as CEO of Australia and New Zealand.
“Greg has an impeccable reputation in the travel industry and possesses leadership skills highly valued by CTM,” Corporate Travel Management’s announcement read. “Greg has had much success in the Australian corporate travel industry over three decades.”
In recent years, fellow ASX-listed travel company Flight Centre Travel Group Ltd (ASX: FLT) has also recognised the potential for growth in the corporate travel sector.
In Australia, Corporate Travel Management estimates the Australian and Kiwi markets are worth $7 billion, while Asia and North America are worth $US650 billion and $US350 billion, respectively.
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