Kuoni acquires GTA from Travelport for $720m
Kuoni has signed a deal to purchase online travel services provider from Gullivers Travel Associates Travelport in a deal believed to be worth $720 million.
Switzerland-based Kuoni said it would use existing cash resources, new long-term debt facilities and equity raised through a discounted share offering to finance the deal.
“In acquiring GTA, Kuoni is investing in one of the fastest-growing business segments within the tourism industry,” said Kuoni chief executive Peter Rothwell.
Kuoni said it had secured credit facilities of CHF600 million Swiss francs.
A further CHF250 million will be sought in the rights offering.
Gullivers Travel
Gullivers Travel 2010 net revenue totalled $294 million, a ten percent rise on the previous year, while adjusted operating profit surged 42 percent to $84 million.
Credit Suisse will act as financial adviser to Kuoni.