Ignite Travel to continue growth after mulit-million dollar takeover by listed Flight Centre Travel
Heads of Broadbeach success story Ignite Travel have revealed how its multi-million takeover by listed Flight Centre Travel Group will impact the group’s operations.
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HEADS of Broadbeach success story Ignite Travel say its multi-million takeover by listed Flight Centre Travel Group will be a runway to continued soaring growth.
Flight Centre announced it had upped its stake in the award-winning Gold Coast company from 49 per cent to 100 per cent, after first buying into the company three years ago.
While terms of the deal are confidential, is thought to have been struck for $25-30 million.
Ignite, which employs almost 200 locals, operates RewardsCorp, My Holiday Centre, MyFiji, MyHawaii, MyCruises, Holiday Exclusives and a host of other businesses.
CEO Ryan Thomas, who was among initial investors in the group’s previous iteration Rewards Corp in 2005, said the acquisition would supercharge the growth of the businesses.
“I will stay in my role here and get to operate it exactly the same way as it operated before,” he said.
“The purchase provides opportunities to grow and open up more than before and it’s a really exciting time.
“It is business as usual, but we will continue to grow.”
Mr Thomas will remain on Ignite’s own three-person board, and wouldn’t rule out vying for a directorship at his new parent company down the track.
Prior to Flight Centre’s purchase, Ignite travel was an unlisted public company, with founder Randall Deer the major shareholder.
While the terms of the acquisition are confidential, Flight Centre’s financial reports show it paid $10 million for its first 49 per cent share of Ignite in 2016 — with the value likely to have increased sharply in the past three years.
“What I can say is that in the past two years, our group has grown 50 per cent year-on-year,” Mr Thomas said.
“Revenue for last financial year was over $190 million.”
Flight Centre reported a $343 million profit for the 2019 financial year.
Investors reacted positively to the news, with shares closing 1.5 per cent higher at $47.45 after opening trade at $46.77 yesterday.
Mr Thomas said the buyout would allow Ignite to recruit more people on the Gold Coast as it targeted international expansion.
A joint statement from the companies said they had brought forward the purchase to capitalise on its highly successful “ready-made” holiday package model.
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FLT managing director Graham Turner said the ready-made package model was growing rapidly in Australia, with Ignite’s unique IP and skills making the company pioneers and a market leader in the exciting new sector.
“Ignite has been hugely successful, growing sales more than 40 per cent per annum for the past two years, and we are excited by its future potential in Australia and overseas,” he said.
“Full ownership of the business will allow for streamlined integration of Ignite’s innovative products and will deliver new offerings and choices to our customers.
“The acquisition will also allow Ignite to expand internationally, with its founder and managing director, Randall Deer, set to work with us in a 50-50 joint venture partnership to develop the company’s unique models in desired international markets.”
Mr Turner said Ignite would continue to operate within FLT’s Emerging Brands division, would remain a separate entity on the Gold Coast and would maintain the operating models that had underpinned its success.
In addition to working to expand the Ignite offering internationally, Mr Deer will take on a new strategic product development role within FLT.
Mr Deer said he was excited by the deal as it would allow Ignite to fully integrate and unlock the potential of its business model.
“Expanding our presence through the Flight Centre network will not only benefit our travel partners, but will also help attract a new customer segment to FLT and to bring this new product range to other markets internationally,” he said.
“Additionally, I’m particularly happy that Ignite will remain a separate operating entity, allowing for its unique culture of innovation in the industry to continue as well as keeping its independent relationships with partners and suppliers, which is important for its ongoing success.”
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