Monday, February 11, 2008

WTF and Phuket: buys Asia Web Direct

With the ink still wet on the "we finally did it" press release from Wotif announcing that the acquisition of is complete, Wotif CEO Robbie Cooke has kept the stock announcements flowing with news of the acquisition of Asia Web Direct. Details from the announcement are:
  • $A34.2mm - A$17.1mm in cash plus same again in WTF shares (3.6mm shares - 80% subject to 6 month escrow);
  • 2007 AWB did 450,000 room nights through 4,000 hotels. In FY07 Wotif did 180,000 room nights in Asia;
  • 150 staff; and
  • 2007 AWB EBITDA ~ A$2.25mm
AWB gives Wotif volume into Asia and an SEO network through and That is a good thing. But it does not give deep foreign language assets or international brand. That is not such a good think. The price is steep at 17x earnings but at Wotif's multiple they can afford it. Is there a good joke to be made about WTF and coming together - no...there are only bad jokes there...

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