Expedia to buy Australian online travel site for $658M
The deal for Australia’s Wotif.com Holdings will strengthen the Bellevue company’s online-booking business in the Asia-Pacific region.
Online travel-booking company Expedia is buying Australia’s Wotif.com Holdings for A$703 million ($658 million U.S.), seeking to expand its presence in the Asia-Pacific region.
Wotif investors will get A$3.06 a share from Bellevue-based Expedia and a special dividend of 24 cents, the Brisbane-based company said in a regulatory filing. The offer is a 25 percent premium to Wotif’s last market close.
Travel websites have been seeking revenue through acquisitions as more people book trips online. Internet travel sales may reach $151.9 billion by 2016 from $107.4 billion in 2011, according to eMarketer.
Expedia CEO Dara Khosrowshahi said in a statement, “Wotif Group is well positioned in the Asia-Pacific region with a portfolio of leading travel brands.”
Wotif Group recorded A$593 million in gross bookings and A$76 million in revenue, in addition to generating 3.2 million room nights, during the six months ended Dec. 31, 2013, Expedia said. The transaction is expected to close during the fourth quarter.