That represents a per share price for HomeAway of $38.31, based on Expedia’s closing price on Nov. 3. Under the terms of the deal, Expedia will offer to acquire each outstanding share of HomeAway’s common stock for $10.15 in cash and .2065 of a share of Expedia common stock.
The deal is subject to regulatory and shareholder approval. Both boards of directors have already approved the transaction.
“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 of Expedia said in a news release.
“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,” Brian Sharples, Chief Executive Officer of HomeAway said in a news release. “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. In this way, I believe our combination with Expedia will turbocharge our growth and industry leadership for many years to come.”
HomeAway, founded in Austin in 2005, has 1,940 employees worldwide including about 1,000 at its five offices in Austin. The company operates an online marketplace of vacation rentals. It has grown through numerous acquisitions. In 2014, HomeAway reported total revenue increased nearly 29 percent to $446.8 million from $346.5 million in 2013.