How Helloworld Travel Ltd is ramping up its acquisition spree

Helloworld Travel Ltd (ASX:HLO) announced a new acquisition today.

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Integrated travel service provider Helloworld Travel Ltd (ASX: HLO) announced today the acquisition of Flight Systems Pty Ltd, a provider of web-based flight booking technologies that also operates airline fare aggregator and booking website Skiddoo.

Helloworld didn't disclose the cost of the transaction, but specified that it will be financed with existing cash reserves. The operation is intended to expand the company's revenue stream with an expected $80 million boost in terms of total transaction value over FY2018. It should also provide Helloworld's network of travel agencies with an online tool easily accessible to customers.

This is the company's fifth acquisition since mid-2017, coming shortly after the takeover of Magellan Travel Group and its 129 agencies. This growth strategy has paid off so far, driving the share price up 20% in the last year and delivering a solid half-year result.

With today's announcement, Helloworld made clear expansion is not over and the company will continue to consider opportunities for further acquisitions in Australia and overseas. However, the news seems to have put investors off, with shares in Helloworld down 2.5% to $4.61 at the time of writing.

Motley Fool contributor Tommaso Autorino has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Helloworld Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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