Expanding New Zealand tech firm Serko has acquired the business and assets of Arnold Travel Technology in an all cash deal from Wotif Group, a leading operator of travel brands in the Asia-Pacific region and part of the Expedia group.
Assuming retention of the majority of Arnold’s existing client base, the Australasian online travel booking and expense management company expects this transaction to result in an uplift in revenues for the six months to 30 September 2015 in the range of 7-8 percent, however EBITDA will not change materially for that period.
Furthermore, Serko expects the transaction to deliver a positive contribution to EBITDA in the second half of the financial year FY16.
The acquisition is expected to increase Serko’s Australasian transactional volume by a minimum of 20 percent (based on current monthly transaction volumes) and was completed for a confidential nominal sum.
“This is an important strategic investment for Serko given we now expect around $US4 billion of Australia’s corporate travel spend [TTV] to be booked through Serko’s platforms,” says Darrin Grafton, CEO, Serko.
“Through this transaction and our ongoing relationship with Expedia, we’re able to continue to serve Arnold’s corporate customers and government accounts, significantly grow our business and to affirm our commitment to our TMC resellers, which we maintain are crucial to our ongoing success in the region.”
Serko will announce its annual results for the year ended March 31, 2015, on 22 May 2015.
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