Webjet has purchased New Zealand-based travel group Online Republic for $NZ85 million ($A80.16 million).
While the online travel company raises the funds for the acquisition through a fully underwritten entitlement offer and new share issue, Webjet shares are in a trading halt.
Webjet managing director John Guscic said “Online Republic represents a unique opportunity to leverage Webjet’s core capabilities into the attractive online car rental, cruise and motorhome segments.”
The deal involves both cash and scrip, with Online Republic’s owners to receive Webjet shares for 22 per cent of the purchase price. The remainder, around $62.6m, will come in the form of cash.
The ASX-listed Webjet (WEB) said it would also be looking at “other growth opportunities.”
Online Republic is a NZ-based global travel group that focuses on car and motorhome rentals as well as cruise bookings. It was founded in 2004 and currently has over $200 million in annual sales.