Hogg Robinson shares soared in early morning trading on the back of acquisition and disposal news.
The travel company Hogg Robinson Group has agreed to sell its software-as-a-service business Fraedom to Visa for £141.75m
The Hogg Robinson board has also announced that it has reached agreement on the terms of a recommended cash acquisition of Hogg Robinson by Global Business Travel Holdings (GBT) – valuing the company at approximately £376m-£410m.
Hogg Robinson stated that if the sale of Fraedom is completed by the time of the Global Business Travel takeover, shareholders will get 120p for each share held. If not, they will get 110p a share.
The Fraedom disposal is expected to complete by March 12, Hogg Robinson said, adding that it must complete by April 30 or the deal will terminate.
In a joint stock market statement, GBT and Hogg Robinson pointed to the benefits of the announced acquisition.
“The complementary geographical footprints of Hogg Robinson and GBT improve the Combined Group's scale and reach in global travel management, offering more comprehensive services to customers.”
The statement added: “Equally, GBT believes that the acquisition will drive growth by strengthening capabilities, products, technology and services for customers due to the complementary products and technology.
In early morning trading, Hogg Robinson shares were up over 51% to 116.1. This is good news for investors as the previous highest share price level over the last ten years has been 85p, so shareholders could make a tidy profit today.