Expedia and HomeAway have entered into a definitive agreement under which Expedia has agreed to acquire HomeAway, including all of its brands, for an equity value of approximately US$3.9 billion in cash and Expedia common stock, representing a per share price for HomeAway shares of US$38.31, based on Expedia’s closing price on November 3, 2015. Under the terms of the transaction, Expedia will offer to acquire each outstanding share of common stock of HomeAway in exchange for US$10.15 in cash and 0.2065 of a share of Expedia common stock.
Dara Khosrowshahi, Chief Executive Officer, Expedia, Inc said, “We have long had our eyes on the fast growing US$100 billion alternative accommodations space and have been building on our partnership with HomeAway, a global leader in vacation rentals, for two years. 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.”
The Boards of Directors of both companies unanimously approved the transaction, which remains subject to customary closing conditions, including regulatory approvals and the tender of a majority of the outstanding shares of HomeAway common stock. The companies expect the transaction to close in the first quarter of 2016.
Khosrowshahi added, “We have tremendous respect for the HomeAway team and the business they have built. With our expertise in powering global transactional platforms and our industry-leading technology capabilities, 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 traveller audience and the owners and managers of its 1.2 million properties around the world.”
Brian Sharples, Chief Executive Officer of HomeAway, Inc. said, “We could not be more excited about joining the Expedia family of leading travel brands and what this move means for our very bright future. 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 travellers. In this way, I believe our combination with Expedia will turbocharge our growth and industry leadership for many years to come.”
