Webjet has announced it will utilise its surplus capital to acquire Locomote, a small Melbourne-based travel company, and return $25 million to shareholders via an on-market buyback. Webjet is an online travel agent that allows customers to book flights, accommodation, and other travel services. Last year, it demerged its hotel booking aggregator business and has since been the subject of takeover speculation, particularly after BGH Capital and Garry Weiss joined forces to make an offer.
The acquisition of Locomote is aimed at accelerating growth in Webjet’s business travel segment. Webjet currently serves business travellers in an unstructured capacity, and the acquisition is expected to allow it to serve customers in a more structured way, especially as their needs become more complex. Locomote provides corporate travel technology solutions.
Webjet CEO Katrina Barry explained that the initial plan involved significant capital investment to organically develop existing technology to meet business travel needs. However, acquiring Locomote is seen as a faster and more efficient way to enhance its offerings in this area.
Prior to this announcement, it was revealed that Helloworld, a bricks and mortar travel agent, had amassed a substantial stake in Webjet. Webjet confirmed that it had engaged in high-level discussions with Helloworld, initially boosting its share price. The company is focused on strategic moves to bolster its position in the competitive online travel market.