Japanese travel solutions provider JTB Corporation signed a definitive agreement to acquire US B2B travel company Northstar Travel Group from investment funds managed by EagleTree Capital and its co-investors on Thursday, 28th August.
Under the terms of the agreement, Northstar will operate as a wholly-owned and independent subsidiary of JTB.
JTB also stated the retention of the existing management team, including CEO Jason Young, but declined to discuss further details of the transaction.
JTB Group president and chief executive Eijiro Yamakita said of the acquisition: “Today's announcement marks the beginning of an exciting new chapter for JTB Group. Northstar brings outstanding expertise and fresh perspectives that perfectly align with our strategic vision. By operating Northstar as an independent subsidiary, we preserve their neutral market position while creating a powerful platform for delivering superior customer experiences. We are confident this structure will unlock significant growth potential while contributing to the innovation and future growth of the travel industry.”
EagleTree Capital co-managing partner Anup Bagaria and senior partner Michael Struble released a joint statement wherein their declared: “It has been an honour to partner with the Northstar team, including chairman and former CEO Tom Kemp and current CEO Jason Young, and to witness the Company's impressive transformation over the last few years. We are confident Northstar is well positioned for future success and look forward to watching it thrive as part of JTB.”
The transaction is set to be closed later this month, subject to customary closing conditions, including regulatory approvals.
What comes next?
For his part, CEO Young remarked: “We are thrilled to partner with JTB as we enter the next phase of our company's incredible history. Our shared commitment to the travel industry, cultural alignment, and collective expertise, combined with the opportunity to accelerate Northstar's geographic expansion in the Asia Pacific region, will enhance our ability to deliver value to our audiences and customers as we advance our mission.”
Likewise, the acquisition advances JTB's growth strategy, which includes geographic expansion and targeted investments in events, information services, market intelligence, and other strategic lines of business associated with the travel industry.
Northstar operates iconic B2B travel event, media, and market intelligence brands like Travel Weekly, Business Travel News, ALIS, The Meetings Show, and Phocuswright.
Through these platforms, Northstar connects a global audience of more than one million professional travel buyers, who shape and drive the travel industry, with more than 1,500 supplier customers seeking to engage them.
BrightTower served as financial advisor and Jones Day served as legal counsel to Northstar.
On the other hand, SMBC Nikko served as financial advisor and Venable LLP and Mori Hamada & Matsumoto served as legal counsel to JTB.
