Expedia has agreed to acquire HomeAway for $3.9 billion, according to The New York Times. This will add vacation rentals to its online booking options. Expedia also owns Hotels.com, Hotwire.com, and Trivago. The article notes that this acquisition will be different for the company, as HomeAway will be run essentially on its own out of Austin, Texas.
“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,” Dara Khosrowshahi, chief executive officer, Expedia, Inc. said in a statement.
Under the terms of the transaction, Expedia will offer to acquire each outstanding share of common stock of HomeAway in exchange for $10.15 in cash and .20 of a share of Expedia common stock. The companies expect the transaction to close in the first quarter of 2016.
