Top 10 online Australian travel agent BYOjet has sold a majority share of its business to publicly listed Disruptive Investments, which also owns Check-in.com.au.
DVI is paying about $1.8m in cash and shares for 54.69% of Professional Performance Systems, the owner of BYOjet .
This includes $1.5m in cash payable by the end of this year “by way of a senior secured convertible security” and DVI shares to the value of $325,000.
As part of the transaction DVI will also merge its travel assets, including Check-in, with PPS for a notional value of $1.05m in PPS scrip.
“The deal will see DVI’s online travel assets including Check-in.com.au merged with PPS and Lenny Padowitz, the founder and CEO of the BYOjet Group, becoming a major shareholder in DVI,” the company said in an announcement.
BYOjet, based just north of the Gold Coast, has been growing quickly and has been rated at Top 10 OTA for the past two years by Experian Hitwise.
DVI says total BYOjet turnover is up 126% since FY12 while revenue has increased 148% over the same period.
The combined entity will feature:
- FY14 total transaction value of $87m
- FY14 revenue of approximately $8.6m
- Website traffic of 8m user sessions in year to Aug 31
- Customer database of more than 400,000
- Direct relationships with 2250 hotels
BYOjet’s assets also includes JETMAX, its proprietary white-label tech platform, which is now being taken to market.
The vast majority of BYOjet revenue is generated by flight bookings.
DVI Chairman, Adir Shiffman, said the deal created a “new major online travel agency group.
“Our goal is to widen customer distribution by leveraging our combined strengths.
“With so few Australian-owned online travel brands remaining we see this as a great opportunity to demonstrate that local businesses can not only thrive here in Australia but also expand into Asia.”
Lenny Padowitz from BYOjet said: “We are excited by the synergies and opportunities”.