Expedia, Inc. has announced this week that it's all set to acquire Orbitz Worldwide and all of its brands in exchange for $12 per share in cash.
According to a press release published on Thursday, the $12 per share in cash represents an enterprise value of $1.6 billion and a "premium of approximately 29 percent over the volume weighted average share price for the five trading days up to and including February 11, 2015."
The transaction has been approved by the Board of Directors at both companies, but is awaiting necessary shareholder and regulatory approvals.
"We are attracted to the Orbitz Worldwide business because of its strong brands and impressive team. This acquisition will allow us to deliver best-in-class experiences to an even wider set of travelers all over the world," said Expedia, Inc. president and CEO Dara Khosrowshahi in a statement. "From the flagship Orbitz.com brand, to other well-known consumer brands such as CheapTickets, ebookers and HotelClub and the business-to-business brands Orbitz Partner Network and Orbitz for Business, the Orbitz Worldwide team has built a devoted customer base and we look forward to welcoming them to the Expedia, Inc. family."
Orbitz Worldwide CEO Barney Harford shared a similar sentiment:
"Our mission at Orbitz Worldwide has been to build our brands to be the world's most rewarding places to plan and purchase travel. We're excited for Orbitz Worldwide to join the Expedia, Inc. family and for our teams to work together to further enhance the offerings we provide to our customers and partners."
Expedia, Inc. scheduled a webcasted conference call on Thursday morning to discuss the agreement.
Although the transaction is still pending select approvals, Orbitz Worldwide's Board of Directors has received a fairness opinion from Qatalyst Partners and has subsequently encouraged its stockholders to vote in favor of the merger.
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