Helloworld Travel Limited to purchase Flight Systems
Helloworld Travel Limited (HLO) has today strengthened its business by agreeing to purchase Flight Systems Pty Ltd, a provider of web-based flight booking technologies and operator of the skiddoo.com.au website.
The agreement, which is subject to certain pre-conditions, comes two weeks after HLO announced it had concluded the acquisition of Magellan Travel Group and is in line with the company’s strategic aim of further developing its leisure and corporate technologies globally.
HLO has agreed to acquire 100% of the business which will be funded from existing cash reserves. The acquisition is expected to be completed by the end of March, 2018. The business is expected to generate TTV of over $80 million in FY18.
Andrew Burnes, HLO CEO said “the acquisition would also strengthen the businesses technology suite in its corporate and leisure wholesale operations”.
“Flight Systems would provide the company with a low risk and low cost entry to some sophisticated distribution technologies to incorporate into the rapidly developing ResWorld agency platform, which is being rolled out during 2018”, said Mr. Burnes.
“Flight Systems is an established business with proven technologies and takes us significantly forward in the expansion of our system capabilities across the business” he added.
Mirza Juddani, CEO of Flight Systems, said “the underlying technologies of Flight Systems will significantly enhance the distribution of travel products through Helloworld Travel’s multiple retail and corporate distribution channels in the Asia Pacific region”.
In addition to delivering an established revenue stream, the new technologies will deliver significant benefits to Helloworld Travel members by:
- Providing an online tool which allows agents to provide their customers with 24/7 bookability via their own branded portals;
- Providing greater flexibility to HLO customers who can book the relatively simple travel services they want online while still having access to the wide range of services that HLO agents offer;
- Providing greater choice for customers, making it easier to book and interact with the HLO network; and
- Delivering greater efficiencies for all the HLO networks.
Merger & Acquisition Strategy
HLO has completed a number of acquisitions since mid-FY17 in its three operating divisions of leisure travel, corporate travel and travel wholesaling.
A summary of these acquisitions include:
- Cruise data manager ‘The Cruise Factory’ which provides up-to-date cruise data to distributors in Australia and around the world;
- Cruise wholesaler and package business ‘Seven Oceans Cruising’, which packages global cruise products with pre and post touring options, flights and other services;
- Home-based travel agency network ‘MTA’, Australia’s largest home based travel agency network; and
- Magellan Travel Group, Australia’s premium agency network with 129 agencies located around Australia.
Helloworld Travel Limited will continue to evaluate M&A opportunities as they arise and will, where appropriate, look to acquire complementary business in Australia, New Zealand and around the world.
Source: Read Full Article