Announce Zuji takeover, shares on hold.

Webjet has entered into a binding agreement to acquire Zuji in Australia, Hong Kong and Singapore.

The acquisition is subject to regulatory approval and will be completed in the first quarter of next year.

Zuji is a subsidiary of Travelocity, which is in turn owned by Sabre Holdings Corporation.

The transaction is expected to lift Webjet’s total transaction value for 2013 by approximately 30 percent.

Webjet managing director John Guscic highlighted the opportunities and benefits associated with this purchase, as Zuji will enable Webjet to fast track the development of its global hotel contracting and online hotel distribution strategies.

“In conjunction with our recent innovations in distribution technology including mobile devices and the world leading Microsoft Windows 8 platform, we see significant opportunities to deepen our market footprint in an environment where the provisioning of online travel is rapidly transcending traditional desktop access and becoming part of the fundamental traveller’s journey and experience,” Mr Guscic said.

A placement of approximately 6.9 million Webjet shares will fund the acquisition, raising $25 million.

Webjet shares will remain in a trading halt until the completion of the placement.