Cox & Kings acquires Australian travel firm

Travel and tour company Cox & Kings’s overseas arm has acquired Australia-based MyPlanet Australia Pty Ltd and Bentours International Pty Ltd for an undisclosed amount. Cox & Kings (Australia) has acquired 100 per cent stake in the unit of European tourism group TUI Travel.

Although Cox & Kings did not disclose the deal value, it said the acquisition has been done through earn-out mechanism and not from the proceeds of the initial public offer (IPO). Earn-out is a mechanism wherein a part of the acquisition cost is linked to future performance of the acquired entity and paid over a period by the buyer.

The global travel and tour operator had last month raised over Rs 610 crore through an IPO, which was subscribed over six times.