Webjet’s $23M Locomote Buy Could Pressure FY26 Earnings but Boost Future Growth
Webjet Group has completed its acquisition of Locomote Holdings for $23 million, aiming to fast-track its digital business travel platform and reduce development risks. The move aligns with Webjet’s FY30 Strategic Plan to expand its footprint in corporate travel.
- Acquisition of Locomote for $17M upfront plus $6M earn-out
- Locomote’s scalable digital platform enhances Webjet’s business travel offering
- Acquisition supports FY30 Strategic Plan growth pillars
- Expected positive revenue impact but EBITDA reduction in FY26
- Accelerates standalone digital business travel launch by ~3 years
Strategic Acquisition to Boost Business Travel
Webjet Group Limited (ASX – WJL) has officially completed the acquisition of Locomote Holdings Pty Ltd, a business travel technology company, for an upfront cash payment of $17 million plus a deferred earn-out of $6 million contingent on future earnings. This acquisition marks a significant step in Webjet’s strategy to strengthen its position in the corporate travel market by leveraging Locomote’s advanced digital platform.
Locomote has undergone a notable transformation over the past two years, evolving from a business heavily reliant on agency networks to one with a fully scalable digital product tailored for business travellers. This shift has driven substantial growth in its total transaction value (TTV), making it an attractive asset for Webjet’s expansion plans.
Accelerating Digital Innovation and Market Reach
According to Katrina Barry, Webjet’s CEO and Managing Director, the acquisition will enable the company to launch a standalone, end-to-end digital business travel offering approximately three years earlier and at a lower cost than developing the technology internally. This accelerated timeline is crucial in a competitive market where speed and innovation are key differentiators.
Moreover, integrating Locomote’s technology and customer base reduces execution risk and shortens time-to-market, allowing Webjet to capitalize on existing momentum. The acquisition also frees up Webjet’s leisure travel team to focus on next-generation innovations, including the application of artificial intelligence and emerging technologies to enhance travel booking experiences.
Financial Impact and Future Outlook
While the acquisition is expected to contribute positively to Webjet’s revenue, it will reduce underlying EBITDA by approximately $600,000 to $900,000 in the current financial year (FY26). However, the company does not anticipate a material impact on overall FY26 results. The deferred earn-out component, payable in three years, is contingent on Locomote meeting certain EBITDA targets, introducing some uncertainty around the total acquisition cost.
This acquisition aligns with Webjet’s FY30 Strategic Plan, which identifies business travel as a key pillar for growth. By securing Locomote’s scalable platform and expanding its customer base, Webjet is positioning itself to capture a larger share of the Australian business travel segment and enhance its competitive edge.
Bottom Line?
Webjet’s Locomote acquisition sets the stage for faster digital innovation but leaves investors watching closely for integration success and future earnings milestones.
Questions in the middle?
- How effectively will Webjet integrate Locomote’s platform and customer base?
- What impact will AI and emerging technologies have on Webjet’s business travel innovation?
- Will Locomote meet the EBITDA targets required to trigger the deferred earn-out?
