Universal Travel Group, a travel services provider in China offering package tours, air ticketing, and hotel reservation services via the internet and customer service representatives, has announced it has entered into an agreement to acquire Zhengzhou Yulongkang Travel Service Company for $5.7 million, 90% of which to be paid in cash and 10% in stock.
Zhengzhou Yulongkang was founded in 2000 in Zhengzhou, Henan Province and has a team of experienced and knowledgeable tour guides that take tourists on more than ten proprietary regional routes and hundreds of points of interest. Unaudited 2009 revenue and net income will be about $10.5 million and $0.86 million, respectively.
The company currently has a management team of 25 people and over 60 tour organizers and guides. Its regional tour routes include "Charming Tibet," "Winter Hot Spring," "Passion Ski Trip," etc.
The company also operates TRIPEASY Kiosks, which are placed in shopping malls, office buildings, residential apartment buildings, and tourist sites. These kiosks are designed for travel booking with credit and bank cards, and serve as an advertising platform for Universal Travel Group. The company’s headquarters and main base of operations in Shenzhen in the Pearl River Delta region of China. More recently, Universal Travel Group has expanded its business into western China, opening a second home base in the Chongqing Delta region, and other attractive tier-two travel markets throughout the country.