Corporate Travel Management (CTM), headquartered in Australia, is acquiring California-based Montrose Travel for $34.3 million, the companies announced Thursday night.
In a statement, CTM Managing Director Jamie Pherous said Montrose and CTM have been working together for the past year on programs and with clients, and "we determined they meet our strict acquisition criteria."
The acquisition expands CTM's footprint in the U.S. According to a release, CTM expects to be one of the country's 12 largest travel companies with the acquisition, and its transactional value in North America is expected to exceed $750 million next year with the addition of Montrose's forecasted sales. The company was ranked 14th on the Travel Weekly Power List for 2015.
Montrose, No. 39 on the 2015 Power List, has 230 employees who will remain employed after the acquisition. The agency has multiple divisions: loyalty fulfillment solutions, leisure and corporate travel, a host agency and groups, meetings and incentives. Montrose CFO Julie McClure said these businesses "dovetail nicely with CTM."
"Together, we will expand our reach and buying power, which gives us a global launchpad," she said.
Pherous said CTM will establish a hub in California with the acquisition of Montrose.
"We have consistently said to the market and our industry that we would pursue acquisitions where they make our business stronger and deliver compelling customer benefits," he said in a statement. CTM first expanded into the U.S. in 2012 and now has locations in 19 cities. Globally, the company operates in 53 countries.