Travelport has reached an agreement to sell its GTA business to Kuoni for US$720 million. Kuoni stated that move will substantially expand its position in online destination management services. It further highlighted that GTA is strategically highly complementary with Kuoni’s traditional tour operations. In addition, GTA fits well with Kuoni Destination Management business (KDM).

GTA’s strength in the growing area of online business-to-business travel services matches KDM’s capabilities in the leisure group travel business. GTA has a strong footprint in the fast-growing Asian market. Also, GTA, in particular through its consumer website Octopus, will further strengthen Kuoni’s existing online consumer activities.

As per the company release the net proceeds from the sale will be used to pay down Travelport bank debt. As at September 30, 2010, on a pro forma basis for the proposed sale of GTA, group net debt was US$2,761 million.

For the year ended December 31, 2010, GTA’s total transaction value was US$ 1,887 million, net revenue was US$294 million and adjusted EBITDA was US$84 million.

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