Online travel company MakeMyTrip on Tuesday said the company has acquired an effective majority equity interest in Thai-based hotel aggregator ITC Group for around $3.2 million. This is the second acquisition by the company within a month in the hotel space. Earlier this month the company had acquired hotel room aggregator hoteltravel.com for $25 million focusing on Southeast Asia.
The ITC Group comprises of International Tour Center Co. Ltd., ITC Bangkok Co. Ltd. and ITC South Co. Ltd.
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 in the ITC Group, the company said.
Further the company also said, it will 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.
In an interview with Business Standard, Deep Kalra, founder and CEO, MakeMyTrip had said, the company is focusing more on the hotel and package tour business and is planning to expand its footprints in the South East Asia market.
Nasdaq-listed MakemyTrip which went public in 2010 had raised around $80 million. With the new acquisition the company has made around three buyouts in the hotel and tour package space by spending around $31 million.
