Flight Centre is looking to gain a foothold in the lucrative US student travel market with a $US28 million ($A38.96 million) takeover bid for US-based StudentUniverse.com (SU).
Shares in the country's largest travel agency lifted two per cent on Wednesday after it said it will use company funds for the all-cash acquisition of unlisted Irish holding company Travelonomy and all its brands.
SU employs 160 people and is the leading student travel brand across all search engines in the US.
Flight Centre managing director Graham Turner said SU was a market leader in a rapidly growing sector estimated to be worth more than $US180 billion annually.
"We see solid future growth potential for it, both within its existing markets and globally," Mr Turner said.
"We believe it will be a great addition to Flight Centre as the company continues to expand its presence in youth and student travel and as the company continues to develop stronger online capabilities, both within its existing businesses as part of the blended travel offering in new areas."
He said SU would bring new online and digital marketing expertise to Flight Centre along with the world's first flight-booking apps with student and youth airfares.
Around one million international students are currently studying in the United States.
Boston-based SU generates more than $US250 million in total transaction value (TTV) and offers specially negotiated student airfares and experiences via its websites and mobile apps.
Flight Centre made a net profit of $256.5 million in 2014/15 and the company expects to lift pre-tax profit between four and eight per cent above the $366.3 million achieved in 2014/15.
Mr Turner has previously said the under 26-year-old market, in particular students, holds significant global growth opportunities for Flight Centre as increasing numbers of Chinese and Indian students travel to Australia, New Zealand, Canada and the US to study.
Flight Centre shares were 84 cents, or 2.2 per cent, higher at $34.91 at 1330 AEDT.
