Publicly held Corporate Travel Management (CTM) acquired employee-owned Travel and Transport, along with its Radius Travel division, for $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 $5 billion in 2019, and Travel and Transport at No. 13, which had $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 $16 billion and Internova (formerly Travel Leaders Group) at $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 $1.34 billion, whereas Travel and Transport's even stronger corporate focus led to ARC sales of $2.16 billion. Both have programs that host agents and independent contractors, with CTM pulling in $120 million from hosted agents and Travel and Transport racking up $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 program in more than 100 countries.
Travel & Transport's CEO Kevin O'Malley will stay on as CEO North America, with CTM chief operating officer Maureen Brady retaining that title. Josh Weiss will be chief financial officer, and Travel and Transport president and chief operating officer Tim Fleming will be president and integration lead.
CTM founder and managing director Jamie Pherous said the two companies have complementary views around delivering personalized 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 $88 million of net cash.