Expedia to Acquire German Travel Site for $600 Million
Dec 21st 2012 5:21PM
Updated Dec 21st 2012 5:22PM
On Friday, Expedia announced that it will purchase a 61.6% equity position in Trivago, a European travel site based in Dusseldorf, Germany. The total cost of the deal is roughly $632 million, based on current exchange rates. The purchase will be funded about 90% through cash, and the rest in Expedia common stock.
In a joint statement, Expedia said it expected the deal to be accretive to earnings in 2013, noting that Trivago's attributes "closely align with our Expedia, strategy and values and we are thrilled to have them join our portfolio." Trivago's co-founder and CEO, Rolf Schromgens, added, "We are very excited to join the Expedia portfolio and eager to learn from their experience, having built-up some of the world's most trusted travel brands."
The deal should close in the first half of 2013. At the time of this writing, Expedia's stock was down 2.5% on an overall down day for the market.
The article Expedia to Acquire German Travel Site for $600 Million originally appeared on Fool.com.Fool contributor Demitrios Kalogeropoulos and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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