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HomeAway, Inc. Reports Third Quarter 2015 Financial Results and Agrees to Acquisition by Expedia, Inc.
|||Announces addition of a traveler service fee to be launched in first half of 2016|
|||Total revenue of $130.7 million, up 11.6% year-over-year (19.8% FX neutral)|
|||Adjusted EBITDA of $40.2 million, up 27.2% year-over-year (39.7% FX neutral)|
|||Online bookable listings of approximately 665,000, up 96.8% year-over-year|
Austin, Texas November 4, 2015 HomeAway, Inc. (NASDAQ: AWAY), the worlds leading online marketplace for the vacation rental industry, today announced its financial results for the third quarter ended September 30, 2015. The company also announced that it has entered into a definitive agreement under which Expedia, Inc. (NASDAQ: EXPE) has agreed to acquire HomeAway®, including all of its brands, for an equity value of approximately $3.9 billion in cash and Expedia common stock, representing a per share price for HomeAway shares of $38.31, based on Expedias closing price on November 3, 2015. Under the terms of the transaction, Expedia will offer to acquire all of the outstanding shares of common stock of HomeAway in exchange for $10.15 in cash and 0.2065 of a share of Expedia common stock. Under the terms of the transaction, Expedia will acquire all of the outstanding shares of common stock of HomeAway through a tender offer, followed by a second-step merger. The Boards of Directors of both companies unanimously approved the transaction, which remains subject to customary closing conditions, including regulatory approvals and the tender of a majority of the outstanding shares of HomeAway common stock. The companies expect the transaction to close in the first quarter of 2016.
Today were announcing business model changes, including the addition of a traveler service fee in mid-2016, which will dramatically change our ability to compete and thrive in the coming years, says Brian Sharples, chief executive officer of HomeAway. Better monetization will allow us to accelerate revenue growth, but most importantly will provide more resources for an even better product and service experience for our owners, property managers and travelers. Mr. Sharples noted traveler service fee, which will be based on a sliding scale, will begin rolling out in Q2 of 2016 and is expected to add an average of roughly 6% to most transactions that run through its online shopping cart. In conjunction with the new traveler service fee, the Company plans to lower commission rates for most of their pay-per-booking customers and provide financial incentives to subscribers based on their annual booking volume through HomeAways platform.
Mr. Sharples continued, Separately, were thrilled to announce our agreement to join the Expedia family of leading travel brands and couldnt be more excited about what this move means for our very bright future. Were eager to benefit from Expedias distribution, technology and expertise, which will allow us to provide an even better product and service experience for our owners, property managers and travelers. In this way, I believe our combination with Expedia will turbocharge our growth and industry leadership for many years to come.
We have long had our eyes on the fast growing ~$100 billion alternative accommodations space and have been building on our partnership with HomeAway, a global leader in vacation rentals, for two years. Bringing HomeAway into the Expedia, Inc. family and adding its leading brands to our portfolio of the most trusted brands in travel is a logical next step, said Dara Khosrowshahi, Chief Executive Officer, Expedia, Inc. We have tremendous respect for the HomeAway team and the business they have built. With our expertise in powering global transactional platforms and our industry-leading technology capabilities, we look forward to partnering with them to accelerate their shift from a classified marketplace to an online, transactional model to create even better experiences for HomeAways global traveler audience and the owners and managers of its 1.2 million properties around the world.
The following information was filed by Homeaway Inc (AWAY) on Wednesday, November 4, 2015 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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