Publicly held Corporate Travel Management (CTM) acquired employee-owned Travel and Transport, along with its Radius Travel division, for US$200.4 million.
The 75-year-old Travel and Transport name will go away with the acquisition and will be rebranded CTM. The acquisition brings together CTM, the No. 11 ranked agency on the Travel Weekly Power List with sales of more than US$5 billion in 2019, and Travel and Transport at No. 13, which had US$3.5 billion in sales. The combined companies' sales would have ranked No. 7 in the most recent list, between Flight Centre Travel Group (USA) at US$16 billion and Internova (formerly Travel Leaders Group) at US$7.48 billion.
The new business will be primarily focused on corporate travel, which makes up 75% of 2019 CTM's sales and 89% of 2019 sales for Travel and Transport. In 2019, according to the Power List, CTM had ARC sales of US$1.34 billion, whereas Travel and Transport's even stronger corporate focus led to ARC sales of US$2.16 billion. Both have programmes that host agents and independent contractors, with CTM pulling in US$120 million from hosted agents and Travel and Transport racking up US$10 million in hosted and contractor sales. Both companies are members of Virtuoso.
Brisbane, Australia-based CTM has a presence in the Asia-Pacific region and Europe, as well as the U.S. Omaha-based Travel and Transport also has an international presence; it recently expanded operations in the U.K., Germany and France. And Radius offers its negotiated hotel rate programme in more than 100 countries.
Travel & Transport's CEO Kevin O'Malley will stay on as CEO North America, with CTM COO Maureen Brady retaining that title. Josh Weiss will be chief financial officer, and Travel and Transport president and COO Tim Fleming will be president and integration lead.
CTM founder and managing director Jamie Pherous said the two companies have complementary views around delivering personalised service and proprietary technology "to generate strong returns for clients on their travel investments".
The new company expects integration to occur more quickly than usual because of the reduced customer activity resulting from the pandemic and said they expect the combined business to emerge from Covid-19 with a strong competitive advantage.
CTM said it has no debt and US$88 million of net cash.
This article was first published in Travel Weekly.