Flight Centre hands over $700k to step up BYOJet deal

Flight Centre hands over $700k to step up BYOJet deal

Flight Centre Travel Group will make a $700k payment to acquire the remaining shares in BYOJet, following its December acquisition of a 70% stake in the online retailer.

The retailer has agreed to buy Disruptive Investment Group’s (DVI) remaining shares in the company for an initial cash payment along with a future payment to be determined by BYOJet’s EBITDA in FY18.

“It has been determined that BYOJet’s potential will likely be maximised if the full integration of the BYOJet Group into FLT is accelerated and if the BYOJet Group is provided with additional capital to fuel its growth by improving its existing technology, developing its infrastructure and increasing the rate of customer acquisition through additional marketing,” a DVI statement to the Australian Stock Exchange said on Friday.

Flight Centre’s acquisition of BYOJet will help the retailer further boost its presence in the online travel sector.

Turning over $100 million a year, the online travel agency’s airfare range includes flights offered by schedules carriers and fares sources from various low cost carriers directly, via API connections.

In addition to selling airfares and other travel products via BYOjet.com, the acquired business generates additional revenue by offering its JETMAX booking system as a white label technology product.

Flight Centre will look to give the business access to its wide range of privately negotiated airfares, increase sales of other products such as hotels and insurance and launch the business in new markets, raising its profile.

 

Latest News