Sify acquires Globe Travels – Enters online travel market
Sify has entered the online travel business by buying Globe Travels (http://www.globe-travels.com), although terms of the acquisition weren’t announced. According to the press release, this acquisition marks Sify’s entry into the fast growing online travel business, particularly e-ticketing, the category with highest revenues and fastest growth in online ecommerce today. Mr R Ramaraj, CEO, Sify Ltd, said, “This strategic acquisition brings into our fold fast growing services that enhance our online offerings to customers, and opens up new sources of revenue. We will also have the benefit of having Mr. Herman Noronha, CEO, Globe Travels, on board along with his team, who will add value with their domain expertise.”
The only information provided in the press release about Globe Travels was: With over 20 years of travel industry experience in both India and the USA, Mr. Herman Noronha founded Globe Travels in the US in 1993, and built a leading and profitable enterprise in the travel business focused on the US-India market.
So we know its a profitable business and a fast growing business which will take advantage of fast growing India-US travel market. Also, with signing of the Open Skies agreement between the two countries it should further the traffic between the two countries.
However, it’s ridiculous that Sify didn’t provide the terms of the acquisition.
- How much did Sify pay for Globe Travels?
- Was it an all cash deal?
- Globe Travels Revenue?
- What’s the integration plan?
- How will they market Globe Travels through Sify’s various websites, subscribers and cyber-cafes?
I still continue to recommend Sify as a ‘buy’ and although I love this acquisition I want to know the answers to the questions above.
Full Disclosure: I own shares of Sify.
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