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Internet-based travel service Webjet Limited (ASX:WEB) has agreed to pay $30 million for online hotel provider SunHotels Group. SunHotels specialises in the major markets of Scandinavia and the UK with a proven and fully owned distribution platform of over 6,000 hotels.
SunHotels has been a highly profitable business over the past eight years with earnings of over $3.7 million for 2013. Webjet will move into management oversight and Board representation and the current management team of SunHotels will be running day-to-day activities.
Webjet will fund the purchase through a euro-dominated set finance facility. Webjet Managing Director John Guscic says the acquisition will complement “the continued development and progress of Webjet’s Zuji acquisition throughout Asia”.
Webjet reported a net profit of $9 million for the full year ended December 31 2013.
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