Expedia has announced an agreement with HomeAway to acquire the leading vacation rental marketplace and all of its brands for $3.9 billion in cash and Expedia common stock.
Both companies' Boards of Directors unanimously approved the transaction, which is expected to close in the first quarter of 2016. Currently, the transaction remains subject to customary closing conditions that include regulatory approvals, among other conditions.
As part of the agreement, Expedia will purchase each HomeAway share of common stock for $10.15 in cash and 0.2065 of a share of Expedia common stock.
"We have long had our eyes on the fast growing $100 billion alternative accommodations space and have been building on our partnership with HomeAway, a global leader in vacation rentals, for two years," said Expedia CEO Dara Khosrowshahi in a statement. "Bringing HomeAway into the Expedia, Inc. family and adding its leading brands to our portfolio of the most trusted brands in travel is a logical next step."
"...We look forward to partnering with them to accelerate their shift from a classified marketplace to an online, transactional model to create even better experiences for HomeAway's global traveler audience and the owners and managers of its 1.2 million properties around the world."
HomeAway CEO Brian Sharples echoed Khosrowshahi's sentiments in a statement of his own.
"We're eager to benefit from Expedia's distribution, technology and expertise, which will allow us to provide an even better product and service experience for our owners, property managers and travelers," said Sharples. "In this way, I believe our combination with Expedia will turbocharge our growth and industry leadership for many years to come."
With an accommodation sharing website under its ownership, Expedia will now be able to compete head-to-head against Airbnb and has a leg up on other competitors, including the Priceline Group and Booking.com.
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