The SeaLink Travel Group Ltd (ASX: SLK) share price will be one to watch when trading opens this morning. This comes after the travel and transport company announced an update to the acquisition of Go West Tours.
Based in regional and remote Western Australia, Go West Tours is a specialist bus passenger transport business. The company mainly serves in the resource sector, providing charter, rental and tour vehicles.
Let's take a closer look at what the company released in yesterday's late market news.
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SeaLink completes acquisition
SeaLink shares could be on the move today as investors digest the company's latest announcement.
In a statement to the ASX, SeaLink revealed that it has successfully completed the acquisition of Go West Tours.
The deal sees SeaLink acquire 100% of the shares from the vendors for an enterprise value of $84.7 million. An earnout component of up to $25 million is also included. The latter will be provided depending on Go West Tours meeting specific financial hurdles over the period to 30 June 2023.
In addition, SeaLink advised it has purchased three strategic property assets for a total of $3.8 million.
SeaLink group CEO Clint Feuerherdt said the acquisition provided a new revenue stream, which was especially pleasing given that SeaLink would be expanding into the attractive resources sector transportation market.
SeaLink share price summary
Over the past 12 months, SeaLink shares have catapulted by more than 115%, with an increase of more than 40% in 2021 alone. The company's share price reached an all-time high of $10.64 in April this year before some profit taking appears to have swooped in.
On valuation grounds, SeaLink commands a market capitalisation of roughly $2 billion, with around 218.4 million shares on its registry.
At the close of trade on Wednesday, SeaLink shares finished the day at $9.49 – up 0.11%. The S&P/ASX 200 Index (ASX: XJO) closed the trading day at 7,265 points – down 0.6%.
