Expedia announced today that it has acquired one of its rivals, Orbitz Worldwide, and other sites run by Orbitz.
The deal is worth approximately $1.6 billion, with Expedia paying $12 per share in cash. Both Boards of Directors approved the deal, which will also have to be approved by the shareholders of Obritz’s common stock. Regulators also have to approve the deal.
“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," Dara Khosrowshahi, President and CEO of Expedia explained.
"From the flagship Orbitz.com 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."
Expedia and Orbitz both deal in travel sales. However, Expedia has been quickly building its portfolio, also acquiring Travelocity recently, notes The New York Times.
Orbitz Worldwide also includes HotelClub, CheapTickets and ebookers. Expedia’s other sites include Hotels.com, Hotwire, trivago and CarRenatls.com.
image via Orbitz.com