Travel firm Cox and Kings India Ltd has acquired Australian firm Tempo Holidays for $25 million. The acquisition has been done through Australian special purpose vehicle Cox and Kings (Australia) Pty Ltd. The acquisition of Tempo, a leisure travel firm with offices in Australia and New Zealand, will be funded through internal accruals and offshore debt from Axis Bank.
The acquisition comes at a time when there is a slowdown in world tourism and travel market. This a good time to buy assets as they might be available at a cheaper valuation. The acquisition of Tempo by Cox and Kings will help the latter establish a presence in Australia and New Zealend's travel market.
Tempo Holidays was founded in 1990 by Susan and Gary Hearst as Yalla Holidays, and was rebranded in 2001 as Tempo Holidays. It currently offers travel arrangements in over 42 countries. The Australian outbound travel market is expected to average annual growth of 5.2% until 2016.
"Tempo Holidays is an excellent fit for us and seeing the performance of Tempo Holidays it reinforced our belief that the Australian market is ready for an upmarket brand such as Cox & Kings. Our products would be widely distributed in Australia and New Zealand," said Peter Kerkar, Global CEO of Cox & Kings.
In 2006, Cox & Kings' travel and tourism portal ezeego1.com acquired majority stake in Forever Travel Distribution Pvt Ltd (FTD), which owned the B2B travel portal `eToursonline'.