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The Company Dime - CTM to Acquire Travel and Transport

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cutting headcount and reducing salary and hours for the remaining workforce. For its fiscal year ending June 30, CTM generated revenue of 350 million Australian dollars ($240 million) and "underlying EBITDA" of AU$65 million. Fifteen percent of revenue came from Asia, 22 percent from Europe, 24 percent from Australia and New Zealand, and 39 percent from the Americas. Depending on recovery and client retention trends, those ratios could change dramatically. According to Travel Weekly, CTM reported 2019 U.S. ARC air sales of $1.34 billion. For Travel and Transport, ARC sales last year were $2.16 billion. Entering 2020, the companies together had about 2,250 employees. Today, it's roughly half that. "Every TMC has had to take action [on costs], but given the opportunity to grow this company very rapidly on the back side of Covid, there's lots of opportunity to go back out to the market and pull people back in," said O'Malley. Pherous referenced Travel and Transport's strength among law, accounting and private equity firms. He expects them to grow travel volumes as they handle consolidation business in a variety of industries. Clients listed on Travel and Transport's website include Columbia, Dunkin' Brands, New Balance and T-Mobile. The pair talked about the benefits of a stronger global offering. Founded in 1946, T&T ramped up its investments outside the United States during the past several years. In 2015, it invested in Derpart MfG Reisen in Germany and Switzerland. In 2016, it opened an office in Lyon, France. In 2017, it bought London-based Statesman Travel. Travel and Transport acquired full ownership of the Radius Travel agency network company in October 2018. It had been a part owner with a controlling interest before that. Radius now counts as members more than 130 travel and meetings agencies around the globe. The Radius name will remain. Radius claims coverage in 112 countries. Pherous mentioned the Radius hotel rate program as an attractive asset. CTM's proprietary network "has the ability to service customers in more than 70 countries around the world," according to its annual report. "This will be a great opportunity for CTM to compete against the three (or four) global TMCs and is especially beneficial for them in the United States," according to Partnership Travel Consulting's Andy Menkes. "A lot will depend on how the Radius network is valued by CTM since they already have an ownership footprint in a number of key REPRINT 2 COPYRIGHT 2020 • B2B REPORTER LLC "There are no assets in a professional services business like this, so it's really important for our businesses not to have any debt. That both of us did not puts us in this position." Jamie Pherous CTM managing director

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