Expedia To Acquire HomeAway For $3.9 Bln.

(RTTNews) - Travel giant Expedia (EXPE) has reached a deal to acquire vacation rental firm HomeAway, Inc. (AWAY) for about $3.9 billion in cash and stock.

The purchase price for the deal includes $10.15 per share in cash and 0.2065 shares of Expedia common stock for each share of HomeAway. The total price values HomeAway at $38.31 per share, based on Expedia's closing price on Tuesday.

Expedia said that HomeAway was an entry into the alternative accommodations space, a sector currently valued at about $100 billion in the firm's estimation.

Based in Austin, Texas, HomeAway concentrates on vacation rentals, with 1 million paid listings in 190 countries.

HomeAway CEO Brian Sharples said he expects Expedia to "turbocharge" its growth in the coming years.

"We're eager to benefit from Expedia's distribution, technology and expertise, which will allow us to provide an even better product and service experience for our owners, property managers and travelers," he added.

In its latest earnings statement, announced along with the acquisition news, HomeAway announced quarterly net income of $10.4 million, or $0.11 per share. This was up from $4.9 million, or $0.05 per share, in the same period last year.

Revenue climbed to $130.7 million from $117.1 million in the same period of 2014.