ComfortDelGro, a leading transport operator in Singapore, is set to acquire Addison Lee, the largest operator of London’s iconic black taxis, for $460 million (£269 million).
The acquisition, announced on Wednesday (23 Oct), will expand ComfortDelGro’s reach, adding 7,500 drivers and 5,000 vehicles to its existing fleet in the United Kingdom.
With this move, ComfortDelGro aims to leverage Addison Lee’s expertise to enhance its premium point-to-point services globally.
The company, already a significant player in the UK public transport market, will see its global taxi and private-hire network grow to more than 34,000 vehicles.
ComfortDelGro’s presence in the UK includes managing 17 per cent of London’s bus services and operating around 1,800 private-hire cars and taxis.
The acquisition of Addison Lee is part of ComfortDelGro’s broader expansion strategy, which also saw it winning a $702 million contract to operate public bus franchises in Manchester and securing three bus contracts in Victoria, Australia, worth $1.45 billion.
The company’s rail operations are also expanding, with an 11-year contract to operate and maintain Stockholm Metro and plans to start running part of the Paris Metro by the end of the next year.
ComfortDelGro aims for overseas markets to contribute significantly to its revenue, reflecting its global ambitions.
ComfortDelGro currently operates in twelve countries and reported $3.8 billion in revenue last year.
The company was ranked No. 128 on Fortune’s Southeast Asia 500 list.
CEO Cheng Siak Kian emphasised that the acquisition of Addison Lee will deepen ComfortDelGro’s premium service capabilities on a global scale.
This strategic move is expected to further solidify ComfortDelGro’s position as a major player in the global transport industry, enhancing its portfolio and operational capacity.
Find out more about ComfortDelGro’s acquisition of Addison Lee here.