SeaLink Travel Group is set to become Australia's largest marine tourism and transport company through its acquisition of Transit Systems Marine for $125 million.
SeaLink, which listed on the Australian share market in 2013, operates under the brands SeaLink and Captain Cook Cruises.
Its deputy chair is Lucy Turnbull, the wife of newly installed prime minister Malcolm Turnbull.
Transit Systems Marine operates passenger and vehicle ferry services in southeast Queensland and Gladstone.
It also has a contract with the Queensland state government to operate the Moggill Ferry on the Brisbane River.
The acquisition of Transit Systems Marine's 33 vessels will more than double the size of SeaLink's fleet to 60.
With the expanded fleet, SeaLink will transport more than six million passengers each year.
SeaLink managing director Jeff Ellison said the acquisition would be transformational for the company and reinforce its position as the leading provider of ferry services in Australia.
"It provides us with a new growth engine as it will significantly enhance our ability to compete for large-scale marine transport business opportunities in Australia and overseas," he said.
The acquisition includes a number of strategic properties.
The Transit Systems brand is not part of the purchase.
Shares in SeaLink surged, adding 29 cents or 10.5 per cent, to $3.06.
Transit Systems Marine's turnover in fiscal 2015 was $90 million, and SeaLink said the acquisition is expected to lift earnings materially in the first full financial year after completion.
The company will fund the purchase through a new bank facility and the issue of shares.
A private placement of 16 million shares to professional and sophisticated investors has raised $40 million.
A further $8 million in shares will be issued to the vendors at the placement price.
In addition, SeaLink will seek to raise up to $16.9 million in an offer of shares to all eligible shareholders.
Bank funding for the acquisition will be about $57 million.
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