Expedia Inc. will acquire rival online travel company
Under the agreement, Expedia will pay $12 per share in cash for Orbitz, a 25% premium above Orbitz's last closing price of $9.60.
The deal has been approved by both boards, but is still subject to regulatory and shareholder approval.
The Orbitz acquisition marks further consolidation in the online travel industry and will add to Expedia's growing portfolio of travel brands, among which include Hotels.com, Hotwire and Travelocity. In addition to Orbitz's namesake site, it operates a number of other brands, including CheapTickets and ebookers.
"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 Expedia CEO Dara Khosrowshahi in a statement.
Expedia has been making a series of acquisitions in an effort to fight against competitors ranging from
The equity portion of the Orbitz deal is valued at roughly $1.3 billion.
Expedia shares popped 9% on the news and Orbitz shares surged 22%.
