After buying TravelCity earlier this month for $280 million in cash, Expedia has now announced an agreement to acquire its rival Orbitz for $1.6 billion – or $12 per share – in cash, a premium of 29 percent on Orbitz’s current share price. Expedia will acquire all of Orbitz’s brands including consumer brands Orbitz, ebookers, HotelClub, and CheapTickets. The Boards of Directors of both companies have approved the transaction.
“We are attracted to the Orbitz Worldwide business because of its strong brands and impressive team. This acquisition will allow us to deliver best-in-class experiences to an even wider set of travelers all over the world,” said Dara Khosrowshahi, President and Chief Executive Officer, Expedia, Inc.
Orbitz is a global online travel company that focuses on using technology to transform the way consumers around the world plan and purchase travel. The company operates the consumer travel planning sites Orbitz, ebookers, HotelClub and CheapTickets. Also within the Orbitz Worldwide family, Orbitz Partner Network delivers private label travel technology solutions to a broad range of partners.
Expedia also powers bookings for some of the world’s leading airlines and hotels, consumer brands, high traffic websites, and thousands of active affiliates through Expedia Affiliate Network.Category Business Investments