Australian firm Flight Centre Travel Group has acquired the operations of Bengaluru-based Travel Tours Group to expand its footprint in South India and grow its leisure travel business.
The acquisition has been carried out by Flight Centre's Indian subsidiary FCM Travel Solutions (FCM) in a cash and stock deal. The combined entity will have a gross revenue of about Rs 3,000 crore. Gross revenue refers to the transaction value of the business carried out by the firm. The deal size was not disclosed.
The deal will allow the Australian firm to capitalise on the growing outbound and inbound travel segments in India.
Flight Centre entered India in 2005 acquiring New Delhi-based travel firm Friends Globe and earns about 70 per cent revenue from corporate travel business in India. Its Indian business is run under FCM Travel Solutions Brand. In 2014 the company made a foray in leisure travel segment and it has set up its outlets in eight cities.
With the acquisition, FCM can tap into B2B and free independent traveller segments in South India. The group will have outlets in 13 cities including Chennai, Goa and Vizag, where it had no presence.
Travel Tours Group had a gross revenue of Rs 750 crore in FY 2016. Following the deal FCM will become one of the largest companies in corporate travel, meeting-incentive tours and free independent traveller (FIT) segments. Shravan Gupta, managing director of Travel Tours Groupwill also join the board of FCM.» Read Complete News.....