The Corporate Travel Management Ltd (ASX: CTD) share price is in the red today despite the company completing a major acquisition.
The business-focused travel agency has officially taken on Helloworld Travel Ltd (ASX: HLO)'s corporate and entertainment travel businesses.
At the time of writing, the Corporate Travel share price is $23.62, 0.55% lower than its previous close.
The broader market is also struggling today. Right now, the S&P/ASX 200 Index (ASX: XJO) and the All Ordinaries Index (ASX: XAO) have both slipped 0.12%.
Let's take a closer look at today's news from the ASX 200 travel giant.
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Corporate Travel share price slides on acquisition update
Shares in Corporate Travel are slumping on Friday after the company announced it had completed a $175 million acquisition.
In mid-December, Corporate Travel agreed to purchase Helloworld's corporate and entertainment businesses, undergoing a capital raise to pay for them.
The company will now work to integrate former Helloworld brands including QBT, TravelEdge, APX, Atlas Travel, AOT Hotels, and Show Group into its offerings.
After adding those brands to its portfolio, Corporate Travel will service more than a quarter of the ASX 200.
The acquisition has also expanded its service and technology offerings in the government and education sectors.
The company paid $100 million in cash and approximately 3.57 million new shares for Helloworld's corporate and entertainment legs.
The cash was raised via an institutional placement and share purchase plan conducted over December and January.
Today's seemingly good news hasn't boosted the Corporate Travel share price, but at least it's not alone in the red.
It's joined by the share prices of fellow ASX 200 travel stocks Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB). They're currently down 1.32% and 1.96% respectively.
Meanwhile, the Helloworld share price is trading 0.84% higher than its previous close.
Today's dip sees the Corporate Travel share price almost 3% higher than at the start of 2022. That's compared to the ASX 200's 1.2% slip over that same time frame.
