The shareholders of Ensemble Travel Group have voted in favor of an acquisition by Navigatr Group in a deal that will yield benefits to members and suppliers alike creating a new consortium model. The deal, which was first announced in early April, is expected to close at the end of May.
“We are very pleased that the shareholders saw the myriad opportunities this deal offered for them from access to new technology and resources to the ability to streamline supplier contracts and programs,” said David Harris, CEO of Ensemble Travel Group who will now assume the role of chairman. He adds that, among the benefits for Ensemble members, will be the access to new travel platforms such as ADX, “which offers agents instant commission visibility, one-click insurance and more to improve efficiencies and earnings.”
Ensemble will remain a standalone entity within the Navigatr group, which is the parent company of Kensington Tours, TripArc, Travel Edge and the Travel Edge Network. Michael Johnson, who previously served as president of Travel Edge, will be named president of Ensemble.
“As I have come to know the Ensemble team and members over the past several months, I am more confident than ever of the value that this new consortium model represents,” said Johnson. “It’s been very gratifying to hear from members about their excitement at the additional opportunities and resources that will be available to them to grow and enhance their businesses.”
The deal did not come without some controversy, however. Hickory Global Partners, a global corporate travel alliance, asserted that Ensemble officers threatened that without a vote of two-thirds of members to approve the Navigatr offer, Ensemble—lacking any other alternatives—would likely cease to operate. Hickory said the process has been "flawed" and "without legal merit."
“Ensemble's board of directors failed their fiduciary responsibility by never informing their members of competing bids, including ours, which we are confident was to the benefit of their co-op shareholders,” said Chris Dane, president of Hickory Global Partners. "Ensemble’s lack of transparency will cost its members and will cause irreparable harm to the travel consortium business as a whole. They are rushing to cram through a vote while withholding key information and competing offers.”
When asked for a comment, a spokesperson for Ensemble told Travel Agent, "In the summer of 2021, Hickory reached out to Ensemble to discuss a potential acquisition. The Ensemble board was happy to look at any potential opportunity that might be in the best interest of the company and its shareholders. A confidentiality agreement was signed but no letter of intent was submitted. In December 2021, we received a formal letter of intent from Navigatr. With yesterday’s announcement, we are focused on the value of what this new chapter brings for Ensemble members and partners."
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