Webjet, an online travel agency out of Australia, is buying Destinations of the World (DOTW), a business-to-business global travel company based in Dubai. Webjet acquired the business with $173 million, according to the announcement on the purchase.
The acquisition, according to Webjet, will substantially increase the global contracts of its hotel booking business, WebBeds, from 23,000 to 28,500, including an extra 3,000 hotels in Asia.
DOTW is a global hotel booking service that operates in the Middle East, Europe, Asia Pacific, and the Americas, with a total transaction value of $529 million. It connects hoteliers with travel retailers – travel agents, tour operators, and third-party wholesalers.
In an interview with the Australian Associated Press, Webjet’s managing director John Guscic said, the acquisition is an important “strategic plank” for a key geographic push into Asia, mainly China, Japan, and South Korea.
The deal will be funded by an entitlement offer, debt funding, and the issue of new Webjet shares to Destinations of the World management and existing private equity shareholder Gulf Capital. The entitlement offer is expected to raise approximately AU$153 million ($110 million).
The deal, expected to complete on November 22, follows Webjet’s acquisition of JacTravel in 2017.
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