Expedia to acquire Wotif Group
July 8, 2014
Published on Jul 8, 2014
US$568m deal expected to boost company's presence in Asia Pacific region
Expedia has entered into an agreement to acquire Wotif Group.
The deal for the Australian online travel company is worth AU$703 million (approximately US$658m), or AU$3.30 per share – approximately 30% higher than Wotif's current share price.
Dara Khosrowshahi, president & CEO of Expedia, said the deal would boost his company's presence in the Asia Pacific market.
"Wotif Group is well positioned in the Asia Pacific region with a portfolio of leading travel brands," said Khosrowshahi. "This acquisition will allow both companies to continue driving growth opportunities by leveraging the unique strengths each brings to the table.
"Wotif Group will… enhance our Asia Pacific supply, while Expedia will expose Wotif Group's customers to our extensive global supply and world-class technology," he added.
Wotif Group operates a series of online travel brands in the Asia Pacific region, including Wotif.com, lastminute.com.au, travel.com.au, Asia Web Direct, LateStays.com, GoDo.com.au and Arnold Travel Technology. The company recorded AU$593m in gross bookings and AU$76m in revenue in the six months to 31 December 2013, generating 3.2m room nights.
"Joining Expedia allows us to rapidly advance two of our strategic initiatives – strengthening offshore supply and improving our customer and supplier value propositions through enhanced technology," said Scott Blume, managing director & CEO of Wotif Group.
"We believe this will help solidify our position as the premier travel brand in Australia and New Zealand, grow our business across the Asia Pacific region and increase our exposure and brand awareness to inbound international travelers."
The completion of the acquisition is still subject to the approval of Wotif Group's shareholders, but is expected to close during the fourth quarter of 2014.
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