Flight Centre Travel Group (FLT) has agreed to buy Iglu, the United Kingdom’s leading online cruise agency for £100m (around $AU$200m), plus £27m in performance-based earnouts.
Cruise is a rapidly growing leisure sector, with sales at both FLT and Iglu increasing 15-20 per cent year-on-year, driven by a resilient customer base and a supply chain that is investing heavily in new ships and partnerships.
Flight Centre Travel Group said the completion of the acquisition subject to a number of procedural steps with the deal expected to be concluded by tomorrow (11 December).
FLT managing director Graham ‘Skroo’ Turner said: “This acquisition delivers immediate shareholder value through EPS accretion and is a game-changer in terms of the future opportunities it unlocks in the global cruise market. Iglu brings a strong brand and a scalable technology platform that aligns with FLT’s strategic objectives.”
Within the intermediary market, London-based Iglu currently captures more than 15 per cent of UK cruise bookings and more than 75 per cent of online bookings. Cruise accounts for around 90% of Iglu’s total bookings, with ski (Iglu Ski) contributing the remaining 10 per cent
The acquisition significantly expands FLT’s cruise footprint, delivering scale, advanced technology and broader access to the UK – the world’s third-largest cruise market.
CEO to stay on
Post acquisition, CEO David Gooch will continue to lead the business, which was founded in 1998 and will now form part of FLT’s global leisure division under CEO James Kavanagh.
“We are thrilled to become part of the Flight Centre Travel Group,” Gooch said. “This opens up significant future growth opportunities, allowing us to scale our operations while maintaining the unique identity that has made us successful.
“By leveraging Iglu’s world-leading ecommerce platform alongside Flight Centre’s global experience, we are perfectly positioned to capture market share. Most importantly, the strong cultural fit between our businesses gives me great confidence that we will continue to deliver exceptional value to our customers and people.”
In addition, Iglu’s industry-leading, proprietary digital platform will:
- Integrate across FLT’s leisure brands to accelerate sales and create a unified, omni channel experience for cruise customers; and
- Serve as a springboard for entry into the US and other high-growth markets.
Iglu also has an attractive margin profile – 3.1 per cent FY25 EBITDA margin versus 2.2 per cent across FLT’s leisure division – and, on a pro-forma basis, is forecast to deliver GBP14.8m in adjusted EBITDA from roughly GBP450m in TTV during FY26.
With Iglu onboard, FLT’s cruise-related TTV will almost double to surpass $2b (annualised) during FY26 – two years ahead of plan.
A $3b-per-year FY28 stretch target is now in place, supported by a rounded cruise network spanning online, offline and wholesale channels.
In the UK, Iglu adds an online cruise platform to a leisure portfolio featuring Flight Centre, Scott Dunn (luxury) and Cruise Club UK. This diversified portfolio is set to deliver more than $1.5b in annualised TTV during FY26, reducing leisure’s Southern Hemisphere weighting.
Scott Dunn’s strong performance since its January 2023 acquisition complements Iglu’s scalable technology and UK presence, unlocking new opportunities in high-growth sectors.
Summary: Deal Structure
• Upfront Payment: GBP100m
• Performance-Based Earn-Outs: Up to GBP27m
• Enterprise Value: GBP122m, equating to 7.25x FY26F EBITDA (including synergies)
• Annualised Synergies: Approx. GBP2.1m expected within two years
• Funding: Cash and existing debt facilities
• EPS Impact: Expected to be EPS accretive in FY26
Summary: Strategic Synergies
• Global Expansion: Scale Iglu’s e-commerce platform across FLT’s leisure brands
• Supplier Leverage: Increase buying power and broaden global product range
• Procurement Efficiencies: Drive savings in non-travel categories
• Operational Efficiencies: Reduce costs and share technology infrastructure
The transaction marks an exit for UK private equity investor LDC, co-investor Beauport Partners and founder Richard Downs and follows a transformational 10-year partnership to create the UK’s leading cruise online travel agency.
