Travel giant Expedia, Inc., (NASDAQ: EXPE) is to acquire Austin, Texas-based world leader in vacation rentals HomeAway, Inc., (NASDAQ: AWAY), including all of its brands, for an equity value of approximately $3.9 billion.
The cash and Expedia common stock transaction is still subject to customary closing conditions.
Commenting on the acquisition, Dara Khosrowshahi, Chief Executive Officer, Expedia, said: “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. 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,” he added.
Led by Brian Sharples, Chief Executive Officer, HomeAway operates sites representing over one million paid listings of vacation rental homes in 190 countries. The company’s portfolio includes HomeAway.com, VRBO.com and VacationRentals.com in the United States; HomeAway.co.uk and OwnersDirect.co.uk in the United Kingdom; HomeAway.de in Germany; Abritel.fr and Homelidays.com in France; HomeAway.es and Toprural.es in Spain; AlugueTemporada.com.br in Brazil; HomeAway.com.au and Stayz.com.au in Australia; Bookabach.co.nz in New Zealand, and Asia Pacific short-term rental site, travelmob.com.
It also operates BedandBreakfast.com, a global site for finding bed-and-breakfast properties, providing travelers with another source for lodging alternatives to chain hotels.