Expedia, Inc is set to acquire Austin-based vacation rental site, HomeAway Inc. and its brands. The transaction was approved by the board of directors from both companies and expects to close the first quarter of 2016.
The deal includes an equity value of about $3.9 billion in cash and Expedia common stock, which represents a per-share price for HomeAway share of $38.31. Expedia also will offer to acquire any outstanding share of HomeAway common stock in exchange for $10.15 in cash and 0.2065 of a share of Expedia common stock.
“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,” Brian Sharples, CEO of HomeAway, Inc., said in a statement. “In this way, I believe our combination with Expedia will turbocharge our growth and industry leadership for many years to come.”
Likewise, Expedia’s CEO Dara Khosrowshahi, is looking forward to adding HomeAway to the Expedia team.
“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.” Khosrowshahi said 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.”
In 2015 alone, Expedia added Travelocity, Orbitz, and now HomeAway under their umbrella for a cost upwards of $5.8 billion. Orbitz was purchased for $1.6 billion and Travelocity for $280 million.
The addition of HomeAway enters Expedia into the world of home rentals and puts the company in competition with leading home rental companies such as Airbnb.