Can Webjet’s Acquisition and Capital Return Strategy Deliver on Ambitious FY30 Goals?
Webjet Group has acquired Locomote to fast-track its business travel offering, aiming for significant growth by FY30, while also launching a $25 million share buy-back program to return capital to shareholders.
- Acquisition of Locomote for $17 million upfront plus $6 million earn-out
- Locomote’s platform to accelerate Webjet’s business travel growth and TTV expansion
- FY26 underlying EBITDA expected broadly flat with FY25, excluding acquisition impact
- Announced $25 million on-market share buy-back program
- Plans to maximize franking credit distributions, possibly via special dividends
Strategic Acquisition to Boost Business Travel
Webjet Group Limited (ASX, WJL) has taken a decisive step to accelerate its business travel segment by acquiring Melbourne-based Locomote Holdings Pty Ltd. The $17 million upfront deal, with a potential additional $6 million earn-out, brings a fully developed, digital-first corporate booking platform into Webjet’s portfolio. This move fast-tracks Webjet’s FY30 Strategic Plan initiative to double total transaction value (TTV) within five years, particularly by expanding its tailored business travel offering.
Locomote’s platform is purpose-built for end-to-end business travel management, featuring a modern technology stack and a clear AI development roadmap. This acquisition not only provides Webjet with a ready-made solution but also adds a team of over 30 experienced professionals, including Locomote’s leadership, enhancing Webjet’s internal capabilities in the business travel sector.
Financial Outlook and Capital Management
Webjet expects the acquisition to contribute positively to FY26 revenue but to slightly reduce underlying EBITDA by approximately $600,000 to $900,000 due to transaction costs and integration expenses. Excluding these impacts and assuming stable trading conditions, FY26 underlying EBITDA is forecast to be broadly in line with FY25, with earnings weighted towards the second half of the year.
Alongside the acquisition, Webjet announced a $25 million on-market share buy-back program aimed at returning surplus capital to shareholders. The program is carefully sized to avoid franking credit deficits and maintain balance sheet flexibility. Additionally, the company plans to maximize the distribution of franking credits, potentially through special dividends exceeding its usual payout ratio of 40-60% of underlying net profit after tax.
Strategic Implications and Market Positioning
CEO Katrina Barry highlighted that the acquisition enables Webjet to serve business travelers more structurally and efficiently, meeting growing demand for seamless digital experiences. By acquiring Locomote rather than building a platform in-house, Webjet saves time and capital, positioning itself to capture a larger share of the business travel market sooner than originally planned.
The rebranding of Locomote as Webjet Business Travel will leverage existing client relationships and sales pipelines, enhancing customer reach. This strategic move aligns closely with Webjet’s broader FY30 vision to refresh its brand, expand international flight market share, and grow its hotels and packages offerings.
Bottom Line?
Webjet’s acquisition and capital return initiatives set the stage for accelerated growth; but integration execution and market response will be key to watch.
Questions in the middle?
- How will Webjet integrate Locomote’s technology and team to maximize synergies?
- What are the specific EBITDA targets tied to the $6 million earn-out, and how achievable are they?
- How might the share buy-back and special dividends impact Webjet’s share price and investor sentiment?
