Webjet Group to acquire Locomote for $17m, announces share buyback
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The news: Online travel agency Webjet has agreed to acquire corporate travel management business Locomote, which will be rebranded as Webjet Business Travel, in an upfront cash consideration and has announced an on-market share buyback program.
The numbers: Webjet has agreed to acquire all shares in Locomote for $17 million, with an additional $3 million deferred earn-out to be paid if “certain EBITDA targets” in three years.
Webjet also announced that it intends to undertake a $25 million on-market share buy-back program over the next 12 months.
The company also flagged that FY26 underlying EBITDA is expected to be “broadly in line” with FY25 and will be weighted to the second half. This excludes the impact of the acquisition and associated costs.
The context: Webjet said the acquisition would help accelerate the delivery of a business travel offering, with material total transaction value and EBITDA growth expected by FY30.
It will also allow the launch of a “stand-alone Webjet Business Travel offering” three years earlier and at a lower cost than building in-house”. Locomote has a team of more than 30 staff who are expected to remain with the business. This would include co-founder and CEO Ross Fastuca, chief operating officer Tass Messinis and chief technology officer Mario Rogic.
Webjet also intends to “maximise the distribution of franking credits as they become available to the Company”, which could include paying special dividends above the Company’s target payout ratio of 40% to 60% of underlying NPAT.
The company’s board also remains committed to declaring an interim dividend for FY26 in November 2025.
What they said: “The acquisition of Locomote, with its secure purpose-built technology, positions us to swiftly provide a distinct Business Travel offering, avoiding any lengthy development phase and at a lower overall cost,” Webjet Group’s CEO and managing director Katrina Barry said.
The source: ASX
