TRAVELPORT has reached an agreement to sell its Gullivers Travel Associates (GTA) business to Kuoni for US$720 million in line with plans to focus on its core business.
Jeff Clarke, CEO & president of Travelport, said: “This is a positive opportunity for us to accelerate our plans. We will apply the net proceeds from this transaction to pay down our bank borrowings.”
For their part, Kuoni is planning to use the GTA acquisition to expand its online destination management business. “In acquiring GTA, Kuoni is investing in one of the fastest-growing business segments within the tourism industry,” said Peter Rothwell, CEO of the Kuoni Group.
The transaction, advised by Blackstone Advisory Partners LP and UBS Investment Bank, is scheduled for completion in May.