It’s taken a bit longer than expected, but Helloworld Travel has finally confirmed completion of its $32.5 million acquisition of the Magellan Travel Group.
Helloworld chief executive Andrew Burnes made the announcement to the Australian Stock Exchange on Thursday.
“We are delighted to welcome the 97 members and 129 agencies of the Magellan network to Helloworld Travel Limited,” he said.
“We look forward to working with the Magellan members throughout Australia to deliver great outcomes for all stakeholders.”
Andrew Burnes
The deal was first announced on December 19, with Burnes saying the acquisition would benefit both businesses. He highlighted a major benefit for his company as the opportunity to enhance the scale of its operations.
“Magellan has been established for nearly ten years and has a great network of members in both the leisure and corporate agency businesses,” he said.
“Many of these Agents were originally with Helloworld and its predecessors in years gone by and with the significant changes we have made in the Helloworld business over the last two years we are looking forward to welcoming them back.”
Meanwhile, Magellan will get the chance to consolidate its position in the marketplace, while at the same leveraging its new owner’s scale and technology platforms.
Magellan Chairman, Andrew Jones
Magellan chairman Andrew Jones said he was delighted to be securing the long-term future of the group.
“Success in travel retailing moving forward is a challenge of growth and scale.”
Andrew Jones, Magellan Travel Group Chairman
“This deal delivers on both fronts with the additional benefit of delivering to our members the technology opportunities that Helloworld Travel is developing to drive productivity and yield to all of its members.”
Originally expected to complete by the end of January, the transaction was delayed due to “some complexities with the Magellan membership structure”.
READ: Helloworld Travel to acquire the Magellan Travel Group
READ: Helloworld to tie of Magellan purchase this month
What do you think of the tie-up?