Flight Centre acquires Iglu Cruise in GBP100m deal
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The news: Flight Centre has agreed to acquire UK cruise agency Iglu Cruise to boost its presence across the high-margin cruise sector.
The numbers: According to a statement released by Flight Centre on Wednesday evening, the deal will see Flight Centre pay GBP100 million ($200.26 million) as an upfront payment, plus up to GBP27 million in performance-based earnouts.
The acquisition gives Iglu an GBP122 enterprise value and is set to boost Flight Centre’s cruise-related total transaction value to over $2 billion annually by FY26.
The context: Flight Centre said that the purchase is set to assist its entry into the US market and will allow it to leverage Iglu’s advanced technology platform for further expansion.
Iglu currently captures more than 15% of UK cruise booking and more than 75% of online bookings. Cruise accounts for around 90% of Iglu’s total bookings, with ski (Iglu Ski) contributing the remaining 10%.
News about the sale first broke in November, after Sky News UK reported that Iglu shareholder LDC, the private equity arm of Lloyds Banking Group was close to selling the cruise operator, with Flight Centre Travel Group the “frontrunner to buy the business”.
What they said: Flight Centre managing director Graham Turner said: “This acquisition delivers immediate shareholder value through EPS accretion and is a game-changer in terms of the future opportunities it unlocks in the global cruise market. Iglu brings a strong brand and a scalable technology platform that aligns with FLT’s strategic objectives.”
The source: ASX
