SeaLink Travel to acquire private bus operator Transit Systems for A$635m.

Tourism and transport company SeaLink Travel Group will purchase Transit Systems Group, Australia’s largest private operator of metropolitan public bus services and with bus operations in London and Singapore. The purchase price incorporates an enterprise value of A$635m ($428m) plus an earn-out component of up to A$63m ($42m). The acquisition will create Australia’s leading integrated land and marine passenger transport business with enhanced scale and capabilities to competitively deliver services under government contracts. The acquisition is being funded through a combination of cash and a new share issue to the Transit Systems Group vendors, to be approved by SeaLink shareholders. Following completion, the Transit Systems Group vendors will become substantial shareholders in SeaLink. “It will be transformational for us and provides us with the opportunity for significant international expansion using established businesses in Singapore and London. This has already opened the door for us to tender for new ferry operations in Singapore and London,” Jeff Ellison, SeaLink’s current Chief Executive Officer.