This is the third travel-booking brand Expedia, Inc. has acquired this year following the acquisition of Orbitz Worldwide for $1.6 billion and Travelocity for $280 million. Its extensive brand portfolio includes the leading online travel brands Expedia.com and Hotels.com.
HomeAway, Inc. based in Austin, Texas, is the world leader in vacation rentals, with sites representing over one million paid listings of vacation rental homes in 190 countries.
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.
“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,” said Dara Khosrowshahi, Chief Executive Officer, Expedia, Inc.
According to HomeAway, Expedia’s distribution, technology and expertise, will allow the company to provide an even better product and service experience for its owners, property managers and travelers.
“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,” said Brian Sharples, Chief Executive Officer of HomeAway, Inc., noting that the company has been moving toward a fully online bookable marketplace and closer to the type of transactional business model with which Expedia has tremendous experience.
“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.