NEW YORK (TheStreet) -- Expedia Inc. (EXPE) announced today that it entered into an agreement to acquire Wotif.com Holdings Limited, an Australian-based online travel company, for total cash consideration of A$703 million or A$3.30 per share, a premium of approximately 30% to Wotif Group's volume weighted average share price for the five trading days leading up to and including July 4, 2014.
The sum is equivalent to $658 million or S$3.09 per share based on July 4, 2014 exchange rates.
Shares of Expedia are up 0.47% to $82.60 in pre-market trade.
TheStreet Ratings team rates EXPEDIA INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXPEDIA INC (EXPE) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."
Highlights from the analysis by TheStreet Ratings Team goes as follows: