Diamond Resorts Sold for $2.2 Billion
Photo courtesy of Diamond Resorts International.
Apollo Global Management has agreed to purchase Diamond Resorts International in a deal valued at $2.2 billion, the Wall Street Journal reported.
Founded nearly a decade ago, the Las Vegas-based timeshare resort company boasts more than 420 vacation destinations in 35 different countries around the world.
New York-based private equity firm Apollo Global is set to pay $30.25 per share for Diamond Resorts, a figure that represents a 26 percent premium over the company's closing share price Tuesday.
The Journal reported Diamond shares rose by 24 percent to as much as $29.76 Wednesday morning.
The sale — which if completed would make Diamond Resorts a privately held company — comes four months after Diamond Resorts announced it would begin working with investment bank Centerview Partners on strategic alternatives.
Hotelsmag.com pointed out that the sale signals a whopping 58 percent premium over Diamond Resorts' February 24, 2016 stock price, which is the day it announced it would look to strategic alternatives.
The deal is expected to close in the coming months and remains subject to several regulatory approvals and customary closing conditions.
Apollo Global's massive purchase comes in the wake of several mega sales, including Marriott International's impending acquisition of Starwood Hotels & Resorts Worldwide and the HNA Group's impending acquisition of Carlson Hotels.
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