MakeMyTrip, the leading Indian online travel agent has acquired a majority equity interest in ITC Group, a Thailand based hotel aggregator for $3.2 million. The Group comprises of International Tour Center Co. Ltd., ITC Bangkok Co. Ltd. and ITC South Co. Ltd. ITC Group is a hotel aggregator and tour operator for Thailand. The ITC Group has relationships with a number of hotels and other local vendors in Thailand to provide hotel reservations, excursion tours and other travel related services for inbound and outbound travellers in Thailand and the South East Asia region.
MakeMyTrip has 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. 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 a price based on valuation linked to the future profitability of the ITC Group.
According to MakeMyTrip, the acquisition will help the company further expand its presence in Thailand, a key market for its outbound holidays business, by establishing more direct hotel relationships in the country. It mentions that Thailand is an important outbound travel destination from India and has accounted for approximately one million Indian visitors this year.
MakeMyTrip’s Previous Acquisitions
It looks like MakeMyTrip’s recent acquisitions are in line with its strategy of strengthening its presence in hotel and holidays segment in India and South East Asia, which is becoming increasingly popular among Indian tourists. The announcement comes on the heels of MakeMyTrips’s acquisition of companies in the ‘Hotel Travel Group’ (HT Group), which has presence in Thailand, Singapore and Malaysia, for $25 million.
MakeMyTrip’s other acquisitions include Singapore based Luxury Tours & Travel Pte Limited (LTT), which it had acquired for more than $3 million in February 2011. It had also acquired a 19.9% stake in Le Travenues Technology Private Limited, which owns and operates www.ixigo.com, an online travel meta search engine for cash consideration of $4.8 million for the purchase of new and existing shares, in August 2011. In November 2011, MakeMyTrip had acquired My Guest House Accommodations Private Limited (MGH), a company that used to aggregate, sell and distribute hotel room inventory focused on budget lodging accommodations and serviced apartments, with an aim to improve efficiency in the distribution of hotel room inventories.