Flight Centre Travel Group (FCTG) has acquired online travel agency Iglu, which operates the Iglu Cruise, Planet Cruise and Iglu Ski brands.
Flight Centre will pay £100 million upfront, plus up to £27 million in performance-based earnouts, according to a statement issued on the Australian Securities Exchange.
Iglu CEO David Gooch will continue to lead the business, which will operate under Flight Centre’s global leisure division. Iglu will continue to be based in its Wimbledon and Portsmouth offices.
David said: “We are thrilled to become part of the Flight Centre Travel Group. This partnership opens up significant future growth opportunities, allowing us to scale our operations while maintaining the unique identity that has made us successful.
“By leveraging Iglu’s world-leading ecommerce platform alongside Flight Centre’s global experience, we are perfectly positioned to capture new market share.
“Most importantly, the strong cultural fit between our businesses gives me great confidence that we will continue to deliver exceptional value to our customers, suppliers and people.”
Flight Centre Travel Group CEO and Managing Director Graham Turner said: “This acquisition creates significant future opportunities in the global cruise market.
“Iglu brings a leading UK position, a strong brand, and a scalable technology platform that aligns with FCTG’s strategic objectives. The business also has a strong people network and a strong culture that aligns with our own.”
Iglu founder and non-executive Chairman Richard Downs, who launched Iglu 27 years ago, will leave the business.
He said: “It’s been a remarkable journey of resilience, creativity and technical innovation, since I started Iglu in a small office in Baker Street with a dedicated team. I’m delighted to see Iglu, now the dominant European online retailer of cruise and ski holidays, become a hugely valued part of one of the largest travel companies in the world.”
The FCTG UK business also includes the Flight Centre, Scott Dunn and Cruise Club UK leisure brands, as well as Corporate Traveller and FCM corporate travel management businesses.
FCTG’s headquarters are in Brisbane, and it has offices in 24 countries.
