By the Caribbean Journal staff
Just a few weeks after buying Travelocity for $280 million, Expedia is at it again.
The travel giant announced Thursday that it had paid the equivalent of $1.6 billion to acquire rival travel company Orbitz.
Expedia has become a significant player in the Caribbean tourism industry, and this expansion should only strengthen its presence.
The deal, which includes of all of Orbitz Worldwide’s brands, amounts to $12 per share.
The transaction has been approved by the boards of directors of both companies, although it is subject to approval by the shareholders of a majority of Orbitz’s common stock, among other conditions.
“We are attracted to the Orbitz Worldwide business because of its strong brands and impressive team,” said Dara Khosrowshahi, president and CEO of Expedia, Inc. “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.”
In a statement, Orbitz Worldwide CEO Barney Harford said the company was “excited” to join Expedia “and for our teams to work together to further enhance the offerings we provide to our customers and partners.”