Expedia Further Expands Into the Asia Pacific With the Acquisition of Wotif Group.
US giant traveling booking site Expedia has recently expanded its presence into the Asia Pacific region after having announced a grand deal to purchase the Australia-based online hotel and traveling booking company Wotif Group for a total of A$703 million (US$658 million).
The company has manage to list on the Australian Securities Exchange, with offices in over nine counties and counts Wotic.com, lastminute.com.au, travel.com.au, Asia Web Direct, LateStays.com, and GoDo.com.au among its own businesses. The deal works out A$3.30 (US$3.09) per share, which is amounted to a 30 percent premium on the valuation of the company-based during the previous weeks’ trading.
The Wotif Group has handled over 3.2 million rooms during the second half of 2013 and counts over 29,000 hotels all over its sites. Though its recorded A$593 million (US$544 million) in totaling bookings and amounted A$76 million (US$71 million) in revenue during the second half of its 2013, its has struggled with the increasing amounts of competition and a strong Australia dollar. The group’s share price has fallen 42 percent over the past 12 months.
“[The acquisition of the] Wotif Group will add to our collection of travel’s most trusted brands and enhance our Asia-Pacific supply, while Expedia will expose Wotif Group’s customers to our extensive global supply and world-class technology,” said Expedia President and CEO Dara Khosrowshahi in a statement.
The deal is undergoing the approval for Wotif Group shareholders and regulatory conditions, but the companies is expecting that it shall be completed during the final quarters of this year. Further development on this matter shall continue to unravel in a latter time.