Press Releases

February 4, 2008
Wotif acquires Asia Web Direct Holdings

Australian-based Wotif.com Holdings Limited (Wotif), a leading online travel distribution company known for its revolutionary last-minute reservation system, has acquired Asia Web Direct (HK) Limited, (AWD) the holding company of various subsidiaries in the AWD group operating in Thailand, Malaysia, Singapore and the UK. Among AWD’s most popular websites are Phuket.com, Bangkok.com and LateStays.com.

The AWD Group is widely considered as a pioneer in providing web-based travel services in Southeast Asia since 1993. Its instant online reservation systems, online tour booking services, and content-rich travel portals have set the pace in the region. The network of more than 100 websites attract around three million visitors monthly and, in 2007, achieved bookings of approximately 450,000 room nights. In Southeast Asia alone, Asia Web Direct has a hotel inventory in excess of 4,000 hotels, and the business has shown consistent growth both in revenues and profits over the past five years.

Said Robbie Cooke, Managing Director and Chief Executive Officer of Wotif.com: "The combination of Wotif.com and Asia Web Direct presents an exciting opportunity to secure a greater share of the Southeast Asian accommodation markets. These markets are likely to see strong growth in coming years as consumers in Asia follow the worldwide trend of booking their accommodation needs online.

"The Wotif.com and Asia Web Direct operations are a very complementary fit. The transaction offers Wotif.com's existing Asian team and all the teams at Asia Web Direct an opportunity to continue the impressive growth achieved by both companies to date. It is particularly pleasing that Neil Cumming and Sii Eawsakul (Asia Web Direct’s President and CEO, respectively) have agreed to remain on board. They both have a wealth of experience and vast knowledge of the Southeast Asian accommodation markets, having built Asia Web Direct up from inception of the company 15 years ago. Sii will continue as Asia Web Direct’s CEO, and Neil will join the Wotif.com Board,” Mr. Cooke said.

According to Neil Cumming, Asia Web Direct has reached a stage in its development where it is ideally placed to capture more of the increasing Asian online market. “I am looking forward to actively participating in this growth both through my continuing role in the business and as a Director and shareholder of Wotif.com. The deal announced today will offer additional security to the entire Asia Web Direct team and far greater opportunities to drive growth in this increasingly competitive market.

"Asia Web Direct has enjoyed strong support from Asian hoteliers in the past and we look forward to providing more exposure for our suppliers through the increased consumer base that will be available from the combined Group’s operations," Mr. Cumming said.

On completion of the deal, which will occur following satisfactory due diligence, shareholders of Asia Web Direct (HK) Limited will receive a combination of Wotif.com shares and cash. The terms and conditions of the sale provide for a working capital adjustment to be calculated as at completion. In addition, the purchase price is subject to adjustment if the company’s audited results for the financial year ending December 31, 2007, do not reach an agreed minimum level.

The addition of Asia Web Direct to Wotif.com’s operations will:

- significantly increase the scale of Wotif.com’s existing Asian operations (in FY2007 Wotif.com sold approximately 180,000 room nights in Asia);
- increase the combined Group’s attractiveness as a distribution channel for Asian hoteliers, and provide Wotif.com’s existing suppliers with further distribution via Asia Web Direct’s sites;
- expand the Group’s geographical customer reach;
- expand the hotel offering available for Asia Web Direct’s customers by providing access to Wotif.com’s inventory outside Asia;
- also expand the offering for Wotif.com’s existing customers by providing access to Asian hotels not currently available on its sites;
- be accretive to Wotif.com’s earnings per share in the first full year of operations.

Asia Web Direct operates from offices in Bangkok, Phuket, Koh Samui, Krabi and Kuala Lumpur, and employs around 150 people. It was furthermore announced that there will be no reduction on existing staff (either in Asia or elsewhere), nor in the Wotif.com team. “In fact,” Mr. Cumming said, “we plan to expand in order to ensure our operations in Asia grow even faster.”

He concluded by saying the combined operation will offer much greater opportunities to both the company’s suppliers and customers alike. “On the supply side we will be able to provide our hotel partners with greater reach and increased sales for their inventory, while customers of both businesses will be able to access more product choice both within and outside Asia,” he said.