Travelport reports it will sell its GTA business, one of the world's largest wholesalers of ground content, to Kuoni, a leading leisure travel organization, for $720 million. The agreed sale is in line with Travelport's strategic plan to focus on maximizing the potential of its core business, Travelport says. The transaction is scheduled for completion in May 2011.
GTA is a world leader in hotel accommodations and related ground travel services with more than three decades of expertise. GTA uses industry-leading technology to market and distribute global travel content, including more than 35,000 hotel properties with instant confirmation, in over 130 countries.
Other GTA travel services include sightseeing tours and attractions, private transfers, group travel and rail passes. GTA distributes accommodations and other travel services through travel wholesalers, tour operators, travel agencies as well as directly to travelers.
Travelport said for the year ended December 31, 2010, GTA's Total Transaction Value TTV was US$ 1.887 million, Net Revenue was US$294 million and Adjusted EBITDA was US$84 million. The net proceeds from the sale will be used to pay down Travelport bank debt, Travelport said.
The transaction is conditioned on the majority approval by Travelport's bank lenders and a vote by the shareholders of Kuoni.