Travel company MakeMyTrip has acquired majority stake in Thailand-based hotel aggregator and tour company ITC Group for $3.2 million.
The company said that this acquisition will help it further expand its presence in Thailand, a key market for its outbound holidays business, by establishing more direct hotel relationships in the country.
“Pursuant to the transaction documents signed with the ITC Group and its existing shareholders, MakeMyTrip paid $2.2 million to the existing shareholders for the sale of their shares in the ITC Group and paid $1 million for subscription of new shares,” it said. MakeMyTrip will also acquire the remaining shares of the ITC Group from the existing shareholders in cash, payable in four tranches, over an earn-out period ending December 2016, at such price based on valuation linked to the future profitability of the ITC Group.
The ITC Group comprises International Tour Center Co. Ltd., ITC Bangkok Co. Ltd. and ITC South Co. Ltd.
The company said that Thailand is an important outbound travel destination for India and received about one million Indian visitors this year which has also led airlines in India to start many direct flights to the destination from various cities from India.
“MakeMyTrip believes that these developments are positioning travel and tourism to Thailand for strong growth by making travel to the country easily accessible and affordable to the middle class in India,” the company said.
MakeMyTrip Ltd is the parent company of MakeMyTrip (India) Private Ltd, India's largest online travel company and MakeMyTrip.com Inc.