Travelport Worldwide (TVPT) Commences Operational, Technological Efficiency Optimization Initiative
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Travelport Worldwide (NYSE: TVPT) disclosed the following in a U.S. SEC filing on Monday:
Item 2.05. Costs Associated with Exit or Disposal Activities.
On November 30, 2016, Travelport Worldwide Limited (the “Company”) committed to undertake, a course of action (the “Program”) to enhance and optimize the Company’s operational and technological efficiency. The Program involves (1) consolidating the multiple technology vendors with which the Company currently works, (2) establishing a new centralized quality assurance function and (3) consolidating the Company’s three existing U.S. technology hubs in Atlanta, Denver and Kansas City into two centers of excellence in Atlanta and Denver.
The Company expects total charges in connection with the Program to be approximately $27 million to $31 million. Of this, approximately $6 million was incurred during the nine months ended September 30, 2016, with a further approximately $5 million expected to be incurred during the fourth quarter of 2016. The Company expects total charges to include approximately $14 million to $16 million in severance and employee-related obligations and approximately $13 million to $15 million in implementation costs. The Company expects that substantially all of these costs will be cash expenditures. The Company may also incur other charges not currently contemplated due to events that may occur as a result of, or associated with, the Program. The Program is expected to be substantially completed within 12 to 18 months, after which the Company expects annualized cost savings of approximately $19 million to $23 million as a result of implementing the Program.
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