TRAVELPORT has agreed to sell Gullivers Travel Associates (GTA), which is one of the world’s largest ground content wholesales, to leading leisure travel organisation Kuoni for $720 million.
The sale, scheduled for completion in May, is dependent on majority approval by Travelport’s bank lenders and a vote by the shareholders of Kuoni.
Jeff Clarke, CEO and president of Travelport, said: “Our strategy is to focus our energies on maximising the potential of our core proposition and, while GTA is a leader in its field with a strong proposition, this is a positive opportunity for us to accelerate our plans.
“Additionally, Kuoni is a well known and long-term customer of Travelport and our aim will be to work in partnership with them to improve further the distribution and sale of the combined Kuoni/GTA inventory across the Travelport subscriber network. Subject to receiving approval from both our lenders and the shareholders of Kuoni, we will apply the net proceeds from this transaction to pay down our bank borrowings.”
Kuoni Group CEO Peter Rothwell said: “In acquiring GTA, Kuoni is investing in one of the fastest-growing business segments within the tourism industry.
“This acquisition, together with our own proven, growing and successful online destination management activities of Kuoni Connect, will transform us into one of the leading global providers of online destination management services.”
As at September 30, 2010, on a pro forma basis for the proposed sale of GTA, group net debt was $2,761 million.
Travelport will report earnings for the year ended December 31, 2010 on March 30, 2011, when it expects to report adjusted EBITDA of $545 million and net revenue of $1,996 million for Travelport, excluding GTA.