MELBOURNE: Webjet Group Ltd. (ASX:WJL) announced Thursday it will acquire Melbourne-based business travel platform Locomote Holdings Pty Ltd for up to A$23 million, fast-tracking its corporate travel strategy and boosting long-term earnings. The deal includes A$17 million in upfront cash and a potential A$6 million earn-out tied to EBITDA targets.
The acquisition enables Webjet to launch a standalone business travel offering three years ahead of schedule, leveraging Locomote’s AI-enabled booking platform and established client base. Locomote’s FY25 total transaction value (TTV) was approximately A$70 million.
“This strategic transaction positions Webjet Group to capture a greater share of the business travel market,” said CEO Katrina Barry. “It allows us to serve customers in a more structured way, avoiding lengthy development phases and reducing capital outlay.”
Webjet also unveiled capital return initiatives, including a A$25 million on-market share buy-back program and plans to maximize franking credit distribution through potential special dividends. The buy-back is sized to avoid franking deficit tax liabilities and will be conducted over the next 12 months.
Excluding acquisition-related costs, FY26 underlying EBITDA is expected to remain broadly in line with FY25, weighted to the second half.
The acquisition is expected to close in the second half of FY26, pending customary conditions. Locomote will be rebranded as Webjet Business Travel, with its leadership team remaining in place.