Flight Centre Travel Group has agreed to acquire Silicon Valley-based Casto Travel Inc (CTI), which mainly serves corporate clients.
The acquisition will see Flight Centre strengthen its presence in North America with CTI’s team of 85 employees.
Established in 1974, CTI currently generates a total transaction volume of US$120 million, mainly from corporate travel and its premium leisure offer, from its three offices in San Jose, San Francisco and Tiburon.
CTI will join Flight Centre Travel Group’s FCM Travel Solutions business and will be able to offer the TMC’s full suite of corporate travel products.
The company’s CEO and president Marc Casto and founder Maryles Casto will remain in executive roles when the acquisition is complete. Flight Centre expects the deal to close in early February 2019.
Graham Turner, MD of Flight Centre Travel Group, said: “Casto strengthens our overall US operation, which includes the highly successful and rapidly growing corporate travel business, along with our on and offline leisure businesses and wholesaler GOGO Vacations. This will give us greater scale in Silicon Valley and in the large West Coast market, where we previously had a relatively small corporate travel presence, while also complementing our larger operations on the East Coast and in other key locations.”
Marc Casto added: “Casto’s focus on pairing industry-leading travel technology with a continual commitment to excellence in service has created a history of success in Silicon Valley. We are excited to partner with Flight Centre Travel Group and extend their best-in-class global platform in this highly dynamic marketplace.”