Wednesday July 29, 8:00 am Eastern Time
Company Press Release
SOURCE: Navigant International, Inc.
Navigant International Completes the Acquisition of
Arrington Travel Center, Inc. and Atlas Travel, Ltd.
Acquisitions Establish Presence in Chicago and Expand Position in Houston
DENVER, July 29 /PRNewswire/ -- Navigant International, Inc. (Nasdaq: FLYR - news), one of
the largest suppliers of corporate travel services in the U.S., today announced it has completed the
acquisition of two corporate travel agencies: Arrington Travel Center, Inc., based in Chicago and
Atlas Travel Services, Ltd., based in Houston. The two companies reported combined revenues in
excess of $31 million from air sales of approximately $300 million during the most recent twelve
month period. With the acquisitions, Navigant's pro forma fiscal 1998 revenues would have been
approximately $190 million. The acquisitions were accounted for as purchases and terms of the all
cash deals were not disclosed.
''Having successfully completed our initial public offering in June, it is exciting to resume our
acquisition strategy,'' said Edward Adams, Chief Executive Officer of Navigant. ''Our plan is to
acquire and integrate profitable, well-managed regional travel companies. Judging from the interest
we see in the marketplace and the number of suitable candidates, we believe we can meet our
internal acquisition goals.''
Arrington Travel Center, founded in 1969, is one of the top 20 companies in corporate travel
management based on air sales. Additionally, the agency's international growth plan produced a
strategic partnership with England's Hillgate Travel with $100 million in air sales. Navigant hopes
to build on this partnership in tandem with its existing operations in England and Scotland as part of
its international expansion.
Atlas Travel started business in Houston in 1958, and boasts a large regional and international
corporate customer base. Known both for its travel management innovations and its extensive
leisure sales program, Atlas is a recognized leader in the travel industry. Additionally, Atlas
operates one of the country's largest 24 hour emergency services for travelers.
''Our long-term plan is to establish a strong presence in each of the 25 largest corporate travel
markets in the U.S.,'' said Edward Adams, chief executive officer of Navigant. ''The acquisition of
Arrington Travel Center provides us with a strong entrance into Chicago and the Midwest, one of
the largest travel markets in the country. With Arrington Travel Center, we now have operations in
17 of the 25 top business travel markets in the country. The addition of Atlas Travel makes
Navigant the largest travel agency in Southeast Texas. Atlas will integrate extremely well with our
existing Houston operation, SuperTravel, as both agencies have large leisure departments that
specialize in cruise sales.''
Adams added, ''Arrington Travel Center and Atlas Travel have both experienced internal revenue
growth over the last few years, despite the commission cuts implemented in September 1997.
Their managements have been very successful in diversifying their respective customer bases to
include domestic and multinational companies, which improves their commission structures.
Additionally, they have moved a large portion of their customers to transaction fee-based managed
contracts. Both of these agencies are focused on personalized service for their customers, and they
add several well-recognized names to our customer base.''
Arrington Travel's Center Chairman, Chief Executive Officer, and Founder, Michael Arrington,
said, ''I am thrilled to become part of Navigant. Now with the resources of a multi-billion dollar
travel company behind us, we have the ability to benefit from additional technological resources
and more negotiating leverage. Navigant's strong operational focus and expertise in managing
fee-based corporate travel provide competitive advantages that we feel will help us better serve
our customers and grow. This unique combination of a worldwide organization with a local
presence gives us the competitive edge in a most competitive market.''
Atlas president, Ariel Leibovitz, said, ''During these changing times in the travel industry, I can't
think of a better company than Navigant to help us ensure that our accounts continue to receive the
best in service, new products and automation enhancements. We share many of the same core
competencies with Navigant and joining efforts will allow us to provide more services at more
competitive prices to our customers. Additionally, our large 24-hour service department, which
handles approximately 35,000 calls a month, can be a valuable asset as Navigant continues its
efforts to improve operating efficiencies.''
Navigant is one of the five largest providers of corporate travel management services in the United
States based on airline ticket sales. The Company currently has 399 regional travel offices and
on-site customer travel operations, including offices in 17 of the 25 largest U.S. business travel
markets. The Company's shares are traded on the Nasdaq National Market System under the
symbol ''FLYR.''
This news release contains forward-looking statements, including statements about the Company's
growth strategies, the integration of prior or potential future acquisitions, the timing of new
acquisitions, the impact of competition, and general industry or business trends or events. Investors
are cautioned that any such forward-looking statements are not guarantees of future performance
and involve risks and uncertainties. Actual events or results may differ materially from those
discussed in the forward-looking statements as a result of various factors, including, without
limitation, the risk factors detailed from time to time in the Company's SEC reports, including the
reports on Form 10-K.
SOURCE: Navigant International, Inc.
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