Hello World: Pherous snaps up another travel business
Corporate Travel Management has struck a $175 million deal to buy Hello World’s corporate and entertainment travel business.
Jamie Pherous's CTM has bought a part of Hello World
The deal will mean CTM will be funded through cash and shares and the Brisbane-based company will also undertake a $100 million capital raising at $21.
CTM shares were at $22.29 before the market opened this morning.
Last year CTM bought Omaha-based Travel & Transport for a cash and debt-free enterprise value of $US200 million.
Hello World Corporate operates brands like QBT, AOT Hotels, Travel Edge and Show Group. Its major customers included state and federal governments in Australia and New Zealand.
It generated an EBITDA of $22 million in 2019 and $1.6 million in the first quarter of this financial year.
CTM said the deal built on its existing brands and provided new clients.
Integrations was expected to take a year at a cost of $5 million.
CTM managing director Jamie Pherous said it was a privilege to be able to buy the business.
“We feel strongly that we will be able to continue to deliver strong product and service outcomes to their customers with our dedicated focus,” Pherous said.
