Cendant to Pay $16 a Share in Cash for Fairfield Communities

Cendant (CD Quote) said on Friday that its pending acquisition of Fairfield Communities (FFD Quote) will be an all-cash deal and will result in a $16 a share payout for each Fairfield share.

The transaction, which Cendant expects to close on April 2, is valued at about $690 million. When Cendant announced the plans to acquire Fairfield, the company said at least 50% of the consideration would be paid in cash, while the rest would either be in cash or Cendant common stock.

Fairfield Communities is an Orlando, Fla., vacation ownership company. Fairfield operates 32 sales centers and manages more than 110 timeshare and whole ownership resort associations.

Late last year Cendant agreed to acquire Fairfield for about $635 million, or $15 a share, but said at the time that the price may increase to $16 a share.

Shares of Cendant, a New York real estate, travel and direct marketing services firm, gained 62 cents, or 4.3%, to $15.12 in recent New York Stock Exchange trading. Fairfield was also up, gaining 23 cents, or 1.5%, to $15.98.