Chambers Travel in the UK and Diplomat Travel in the US have been taken over by Australian business travel firm Corporate Travel Management for a combined A$52.6 million.
The acquisitions are in line with a strategic plan to establish a strong base in the UK and Europe and continue to expand in North America.
The deals are targeted to take effect from January 2, 2015 and will contribute approximately A$4 million earnings before interest, tax, depreciation and amortisation (EBITDA) over six months trading to CTM’s 2015 annual results.
CTM managing director, Jamie Pherous, said growth would be in line with its proven business strategy focusing on personalised service, tailored technology solutions and a commitment to delivering a return on investment.
London-based Chambers Travel has operations in England, Scotland, France, Germany, Holland, Switzerland, Sweden and the Czech Republic.
Chambers Travel services clients in 10 European languages, giving CTM an additional competitive advantage.
The two travel management companies have worked together on winning and servicing clients for more than a decade.
Diplomat Travel is based in Washington DC and expands CTM’s US coverage to the east coast. CTM will now cover all major time zones in the US and operate from 18 cities across eight states.
Pherous said: “As a result of these acquisitions, CTM will now operate in 46 cities, across 23 countries, on four continents; employing over 1,800 staff worldwide.
“Both acquisitions meet our strict acquisition criteria. They possess capable and passionate management teams, are leaders in corporate travel in their respective regions, enjoy high client and staff retention, and will have significant ownership in CTM via CTD stock.
“We are delighted to have Chambers Travel become our anchor point in the UK and Europe to lead future growth in this region. This partnership culminates a decade of successfully working together allowing a seamless transition for our respective management teams.
“Chambers is a multi-award winning company with an excellent track record of winning and servicing regional and global clients. Together with our well established businesses in the Asia Pacific and North America, we have a significantly improved our offering for regional and global clients, particularly for travel across the Atlantic.”
“Meanwhile, Diplomat Travel has a highly capable team with some of the finest expertise in the industry that we have ever seen. The Diplomat Travel team will provide an excellent East Coast base to deliver future growth,’’ he said.
Chambers Travel chief executive, Chris Thelen, said the company had watched CTM build a strong business over the years based on highly personalised service delivery with best-in-class technology solutions to deliver meaningful return on investment to clients.
“We share this same philosophy. As the new European regional headquarters for CTM, we are significantly enhancing our service offering to clients, while providing exciting new career opportunities for our employees,’’ he said.