Online travel agency Webjet (ASX:WEB) is to buy Dubai-based business travel wholesaler Destinations of the World for $240 million.
Destinations of the World operates throughout the Middle East, Europe, Asia Pacific and the Americas.
It's a pure-play, business to business accommodation wholesales platform connecting hoteliers with travel agents, online travel agents, tour operators and third-party wholesalers.
The acquisition, expected to complete on November 22, follows Webjet's acquisition of JacTravel in 2017.
Webjet said the DOTW purchase would be funded by a fully underwritten accelerated pro rata non-renounceable entitlement offer, debt funding and an issue of new Webjet shares to continuing management shareholders and DOTW's existing private equity shareholders, Gulf Capital.
Shares in Webjet (ASX:WEB) are currently Trading Halt - Last traded at $12.91.