The Australian travel agency currently operates a number of leisure travel brands in several countries, including the UK.
"Scott Dunn provides an entry point into the UK and U.S. luxury travel market through a well-regarded, scalable brand which will be supported by FLT's global platform," Flight Centre's managing director, Graham Turner, said in a statement.
The travel management firm said the acquisition will add to its fiscal 2023 earnings per share in the mid-teens percentage.
The deal will be funded through a share placement of A$180 million ($127.04 million) and A$40 million in cash, Flight Centre said.
The capital raising will be conducted at an offer price of A$14.60 per share, representing a discount of 8.4% to Flight Centre stock's last close price of A$15.83 on Friday
Additionally, Flight Centre said it now expects half-yearly group revenue to more than triple to A$1.10 billion for fiscal 2023.
It also expects to post strong margins and return to profitability, anticipating an underlying EBITDA of A$95 million, compared to a loss of A$184 million last year. It forecasts underlying EBITDA to range between A$250 million and A$280 million in fiscal 2023.
($1 = 0.8100 pounds)
($1 = 1.4168 Australian dollars)
(Reporting by Navya Mittal in Bengaluru; Editing by Anil D'Silva)
