The owner of host agency Travel Edge is seeking to acquire Ensemble, the U.S. and Canadian member-owned travel consortium that includes more than 600 independently-owned agencies in North America.
The privately-owned travel holdings company Navigatr counts Kensington Tours, TripArc, Travel Edge, and the Travel Edge Network among its brands.
According to a letter sent to Ensemble members, the group's Board of Directors voted in favour of moving forward with Navigatr's proposal. Shareholders are scheduled to hold a special meeting next week to discuss the deal, which would then require shareholder approval.
Based in Toronto, Navigatr was founded by Travel Edge CEO and Founder Jeff Willner in 2018. According to its website, Navigatr reports more than $1.1 billion in annual sales.
In a statement, Ensemble CEO David Harris said the deal offers an "exciting opportunity" for the company.
"While the pandemic has certainly brought many challenges to our industry, it has also given us the opportunity to explore new ideas and relationships," he said.
"While it is up to the shareholders to decide on the future of Ensemble, this is an exciting opportunity that would couple Ensemble's areas of expertise and robust agency network with Navigatr's great depth of resources that we know will create a compelling value proposition within the consortia space."
The two companies say that the advantages of the acquisition would include "the ability to leverage Ensemble's strengths in cruise, tour, marketing and data monetization, with Navigatr's complementary platforms and expertise in delivering technology." They add that a merger will "enable agencies to sell more effectively by bundling services into single price transactions which together will enhance and streamline the overall member experience."
In its letter to members, Ensemble also said the deal would bring Ensemble members an enhanced profit-sharing model for 2022 and beyond.
If the deal goes through, Ensemble would remain a "standalone" company, with Harris assuming the role of Chairman. Former Travel Edge president Michael Johnson would also take on the role of Ensemble president.
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