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Almost a decade after snaring a 50 per cent stake in Gold Coast-based Mobile Travel Holdings, Helloworld Travel (ASX: HLO) has moved to full ownership for $36 million – valuing the business at almost three times the original purchase price.
Helloworld Travel has acquired the remaining 50 per cent of Mobile Travel Holdings, owner of the Mobile Travel Agents brand, via a call option as part of the original deal when it acquired a half share in the business for $14 million in 2016.
While the option agreement was due to expire on 31 December 2021, Helloworld extended the deadline to 2025 due to the impact of COVID-19 on the travel sector at the time.
Founded by Karen and Roy Merricks in 2000, Mobile Travel Agents (MTA) operates in the retail leisure and SME corporate travel sectors across Australia with more than 60 personnel and around 450 home-based travel agent advisors in the group.
The Merricks established the business with a view to making the careers of travel professionals more rewarding through a flexible home-based approach to the industry.
Helloworld says MTA is one of the most successful mobile retail travel broker operations in Australia, noting it has been a multiple winner of the Best Retail Travel Broker Network Award at the National Tourism Industry Awards.
The cash-based acquisition of MTA represents a $50 million investment for Helloworld for a business that is now valued at $72 million.
Helloworld says its total outlay for the business represents a multiple of five times MTA’s earnings and is expected to add an annualised $440 million to Helloworld’s total transaction value which stood at $3.8 billion at the end of FY25.
“MTA is one of the most iconic brands in the retail travel broker area for many years,” says Helloworld CEO Andrew Burns.
“We have been closely involved with MTA since the initial 50 per cent acquisition in 2016 and worked together in a cohesive and strategic way since then including leading up to this final investment to ensure the business continues to prosper moving forward.’’
As part of the transaction, Helloworld has appointed Lesley Owen as group general manager of MTA.
“I am honoured to lead MTA, a business I have admired for a long time for its unique client offering and agent proposition,” says Owen.
“I look forward to continuing the amazing legacy created by Karen and Roy Merricks and working alongside Sara and Ben Merricks who are remaining in the business.”
Following the acquisition, Don Beattie, the CEO of MTA, will remain with the company in an advisory capacity to assist with the ownership transition.
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