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Expedia buys rival Orbitz for $1.6 billion

dara khosrowshahi expedia EDITED

Expedia’s President and Chief Executive Officer, Dara Khosrowshahi

Expedia has announced it has entered into a definitive agreement under which it will acquire Orbitz Worldwide, including all of Orbitz Worldwide’s brands, for USD$12.00 per share in cash, representing an enterprise value of approximately USD$1.6 billion.

The Boards of Directors of both companies have approved the transaction, which is subject to approval by the shareholders of a majority of Orbitz Worldwide’s common stock and other customary closing conditions, including applicable regulatory approvals. The Board of Directors of Orbitz Worldwide received a fairness opinion from Qatalyst Partners and has recommended that its stockholders vote in favour of the merger.

“We are attracted to the Orbitz Worldwide business because of its strong brands and impressive team,” said Expedia’s President and Chief Executive Officer, Dara Khosrowshahi.

“This acquisition will allow us to deliver best-in-class experiences to an even wider set of travelers all over the world.

“From the flagship brand, to other well-known consumer brands such as CheapTickets, ebookers and HotelClub and the business-to-business brands Orbitz Partner Network and Orbitz for Business, the Orbitz Worldwide team has built a devoted customer base and we look forward to welcoming them to the Expedia, Inc. family.”

Orbitz Worldwide CEO Barney Harford added: “Our mission at Orbitz Worldwide has been to build our brands to be the world’s most rewarding places to plan and purchase travel.

“We’re excited for Orbitz Worldwide to join the Expedia, Inc. family and for our teams to work together to further enhance the offerings we provide to our customers and partners.”

The acquisition comes just weeks after Expedia acquired Travelocity from Sabre Corporation for USD$280 million in cash.

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