January 20, 2010 (FinancialWire) — Universal Travel Group (NYSE: UTA), a travel services provider in China, said that it has entered into a letter of intent to acquire Hebei Tianyuan Travel Agency for RMB 29 million (approximately $4.2 million).

Of the total amount, 80% of will be paid in cash and 20% in shares of the company’s common stock, according to Universal.

Universal said that the purchase consideration may be subject to adjustment after the completion of acquisition audit on Tianyuan by the company.

Founded in 1999, Tianyuan was the first authorized travel agency in the Hebei Province in China. Universal said that its unaudited full year 2009 revenues and net income are around $7.2 million and $0.7 million, respectively.

China-based Universal Travel Group offers package tours, air ticketing, and hotel reservation services via the Internet and customer service representatives.

The company also operates kiosks that are placed in shopping malls, office buildings, residential apartment buildings, and tourist sites. The kiosks are designed for travel booking with credit and bank cards, and serve as an advertising platform for Universal Travel Group.

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