US corporate and business travel firm TripActions will expand its reach in Europe with the acquisition of venerable UK-based TMC Reed & Mackay.
TripActions confirmed the deal on Wednesday (5 May); no price has yet been disclosed, but the US firm said the acquisition and its accelerated growth plans came off the back of a recent US $155 million cash injection.
Reed & Mackay was founded nearly 60 years ago and now operates in more than 50 markets around the world, offering corporate travel and spend management solutions for a wide range of partners.
TripActions said Reed & Mackay would retain its premium brand and experienced employee base, and continue to offer a "high-touch tailored service", with the backing of the US firm’s technology platforms.
“Reed & Mackay has long led the corporate travel industry as a premium service for the most discerning clients with custom needs,” said Ariel Cohen, co-founder and chief executive of TripActions.
"Its first-class service and product, paired with the technology and culture of innovation at TripActions, will create a new breed of travel management that is able to cater to the every need of companies of all sizes in every geographic location."
It is the second significant acquisition in a matter of days in the corporate travel world after American Express Global Business Travel confirmed on Tuesday (4 May) it had secured a deal for Expedia Group’s corporate travel division Egencia.
"This acquisition significantly changes the TMC landscape and it is pleasing to see TripActions further its investment in the European market," said Scott Davies, chief executive of The Institute of Travel Management.
"Combining the corporate travel and spend technology of TripActions with the high-touch service and scale of Reed & Mackay will create a very compelling proposition across a wide range of market segments."
Together, TripActions and Reed & Mackay will oversee a US $5 billion travel budget, and serve 5,000 customers around the world.
"By joining forces with TripActions, the clear market leader in driving innovation for user experience, we will further enhance the value that we deliver to our prestigious client base," said Reed & Mackey chief executive Fred Stratford.
"Both businesses have a forward thinking mindset and both place the needs of clients at the heart of everything we do. Together, we can provide an unparalleled service offering and traveler experience. It’s not only hugely exciting, it’s game-changing."