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Kuoni acquires GTA from Travelport for $720m

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.