HomeAway, Inc. (NASDAQ:AWAY) the world's leading online marketplace for the vacation rental industry, announced it’s the third quarter financial results. Total revenue increased 11.6% to $130.7 million from $117.1 million in the third quarter of 2014. Net income attributable to HomeAway was $10.4 million, or diluted earnings per share $0.11, compared to net income attributable to HomeAway of $4.9 million, or diluted earnings per share $0.05, in the third quarter of 2014.
The company also announced that Expedia Inc. (NASDAQ:EXPE) has agreed to the buyout HomeAway for approximately $3.9 billion in cash and stock, representing a per share price for HomeAway shares of $38.31, based on Expedia's price on November 3, 2015. Under the terms of the transaction, Expedia will buyout each outstanding share of HomeAway in exchange for $10.15 in cash and 0.2065 of per share of Expedia. The deal, waiting for regulatory approvals, is expected to finish in the first quarter 2016.
"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 HomeAway's global traveler audience and the owners and managers of its 1.2 million properties around the world."
HomeAway has its core as an offline destination for vacation home listings and has struggled in recent years to shift itself into booking transactions services. Expedia said it could help the company capture more business by combining.
Buying HomeAway help Expedia to have more control of the profitable market for apartments and vacation homes as Airbnb moves on traditional booking sites’ dominion. It also help Expedia increase inventory in vacation-rental destinations dominated by companies like TripAdvisor Inc. (NASDAQ:TRIP) and Priceline Group Inc. (NASDAQ:PCLN)