Webjet has just confirmed the proposed acquisition of rival online agency Zuji, which is a subsidiary of Sabre Holdings' Travelocity.com.
The binding agreement covers Zuji's operations in Australia, Hong Kong and Singapore, including Virgin Australia's Blue Holidays.
The $25m purchase price is about 4.6 times adjusted proforma earnings, with Webjet saying the deal will boost its total transaction volume by about 30%.
"The acquisition of Zuji represents a unique opportunity to substantially expand Webjet's marketing footprint, particularly in the major future growth markets of Asia," said Webjet md John Guscic.
He said the move coincides with the rapidly changing structural elements of aviation in the Asia-Pacific region, with Zuji also helping to "fast track the development of Webjet's global hotel contracting and online hotel distribution strategies".
The deal is being funded by a placement of 6.9m Webjet shares at $3.60 per share.
Travelocity global president, Carl Sparks, said "The strength of the Zuji brand and business across the APAC region made it an attractive proposition for Webjet and we believe that this is the best option for future success of the Zuji business, its employees and customers".
More information in today's Travel Daily.
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