Expedia’s takeover of Travelocity from Sabre Corporation has been sealed for $280 million in cash.
The deal follows a strategic marketing agreement between Expedia and Travelocity in 2013, under which Expedia has powered the technology platforms for Travelocity’s US and Canadian websites.It also provided Travelocity access to Expedia’s supply and customer service programme.
Dara Khosrowshahi, president and chief executive of Expedia said: “Travelocity is one of the most recognized travel brands in North America, offering thousands of travel destinations to more than 20 million travelers per month.
“The strategic marketing agreement we’ve had in place has been a marriage of Travelocity’s strong brand with our best-in-class booking platform, supply base, and customer service.
“Evolving this relationship strengthens the Expedia family’s ability to continue to innovate and deliver the very best travel experiences to the widest set of travelers, all over the world.”
Tom Klein, president and chief executive of Sabre, said: “Our primary focus at Sabre is to provide mission-critical software solutions to our global airline, hospitality, and travel agency customers – and to help them support their customers every day.
“We have had a long and fruitful partnership with Expedia, most recently by partnering to strengthen the Travelocity business, so our decision to divest Travelocity is a logical next step for us both.”
The Expedia buyout of Travelocity was expected by insiders to take place when the two firms announced a “strategic marketing alliance” back in August 2013.
However the deal, in effect a full outsourcing to Expedia, stopped short of a full buyout.
In the interim Travelocity parent Sabre sought to cut some of the fat from its operations as it prepared for an IPO on the NASDAQ, completed in April.
Following the IPO Sabre eventually sold UK dot.com darling lastminute.com to Bravofly.