Webjet Group (ASX:WJL) Completes Locomote Acquisition
Acquisition Details
Webjet Group has completed the acquisition of 100% shares in Locomote Holdings Pty Ltd for an upfront cash consideration of $17 million and a deferred earn-out of $6 million, payable in three years subject to certain EBITDA targets.
Strategic Rationale
The acquisition aims to scale Locomote’s digital business travel platform, aligning with Webjet Group’s FY30 Strategic Plan to expand its business travel segment in Australia and reduce time-to-market and execution risk.
Financial Impact
The acquisition is expected to positively contribute to revenue and reduce Underlying EBITDA by approximately $600,000-$900,000 in FY26, with no material impact on overall results.
Executive Comments
CEO and Managing Director Katrina Barry stated, “Two years ago, Locomote was a different business with limited TTV and a high dependency on the agency network. Since then, it has rebuilt and transformed its platform to meet the challenges and trends occurring in the corporate travel market, delivering a fully scalable digital product designed for the business traveller and significant growth in its TTV. It is this state-of-the-art digital product that Webjet Group will focus on scaling and enhancing with our brand strength, partnerships and reach, to increase our existing share of the business travel segment in Australia. This is one of the key pillars for growth outlined in our FY30 Strategic Plan and, by acquiring Locomote, its technology and growing customer base, we have simultaneously reduced time-to-market and execution risk on planned capital expenditure. The acquisition will not only enable the launch of a standalone, end-to-end, digital Webjet Business Travel offering approximately three years earlier and at a lower cost than building in-house, it will also free our leisure team to focus on the next wave of innovation, including the application of AI and other emerging technologies to make travel booking even smarter.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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