ATLANTA -- WorldTravel Partners and BTI Americas Inc. sealed their
long-anticipated merger, creating the nation's third largest travel
management company with $3.3 billion in annual air volume and
another $600 million in franchise sales. Financial terms of the
stock-for-stock transaction were not disclosed.
WorldTravel International, the parent company, of World Travel
Partners, will hold a majority stake in the company, while a newly
created executive team will hold the remaining interest.
"BTI had been in involved with a number of entities that had
outside interests besides just travel," said Ralph Manaker, former
president of BTI Americas and the new co-president of the merged
agency. "We were looking for some more financial stability for the
organization. WorldTravel Partners presented us with that
opportunity. We believe they are long term players in the
industry."
BTI Americas entered merger talks with WorldTravel Partners in
June, after several top executives bought out the agency from
Plano, Texas-based Electronic Data Systems.
WorldTravel International helped finance the BTI Americas buyout
after several other agencies took a look at BTI Americas books and
walked away from a potential merger, according to officials.
WorldTravel Partners officials said the merger with BTI Americas
will give it geographic coverage and scale that will help it better
compete with American Express, Carlson Wagonlit and others. "There
has been quite a deal of consolidation," said Jack Alexander, chief
executive officer of WorldTravel Partners. "What you're seeing is
probably the establishment of a handful of companies that can
service the large market accounts."
Alexander said the new company will work heavily with
WorldTravel Partners' sister firm, Travel Technologies Group, to
provide end-to-end technology for corporate clients. The agency
will also develop Internet connections to reduce overall costs.
WorldTravel Partners will drop its alliance with GTM Global
Travel Management and join Business Travel International, the $20
billion agency network led by London-based Hogg Robinson. There are
no immediate plans for Hogg Robinson to buy a stake in the newly
merged agency.
The Atlanta-based agency will initially be called
BTI/WorldTravel Partners, but migrate towards WorldTravel Partners,
a BTI International partner. WorldTravel International chairman
John A. Fentener van Vlissingen will serve as chairman of the new
agency. Alexander will remain as chief executive officer, while
Manaker and Danny Hood will be co-presidents.
BTI Americas current Northbrook, Ill. offices will serve as a
divisional headquarters, with other divisions offices in Dallas,
Atlanta, Boston, New York, Washington D.C., San Francisco and
Atlanta.