Tourism and transport company SeaLink Travel Group will purchase Transit Systems Group, Australia’s largest private operator of metropolitan public bus services and with bus operations in London and Singapore.
The A$635 million-plus (US$428m) acquisition will create Australia’s leading integrated land and marine passenger transport business.
SealLink also operates retail travel agencies in Adelaide and Townsville as well as tour wholesaling to the travel trade
SeaLink’s current CEO, Jeff Ellison, said the deal “will be transformational for us and provides us with the opportunity for significant international expansion”.
“This has already opened the door for us to tender for new ferry operations in Singapore and London.”
Once the sale has been completed, the combined group will have more than 8,000 employees and operate more than 3,200 buses and 78 ferries in New South Wales, Victoria, Queensland, South Australia, Tasmania, the Northern Territory, Western Australia, London and Singapore.
The deal is expected to be finalised by early 2020.
The acquisition is being funded through a combination of cash and a new share issue to the Transit Systems Group vendors, to be approved by SeaLink shareholders.
As a result of the deal, Transit Systems Group chief executive, Clint Feuerherdt will replace the retiring SeaLink CEO, Jeff Ellison.