PHOENIX & PORTLAND, Ore. – Casago, a premier rental property management company, and Vacasa, a leading North American vacation property management platform, have announced a definitive merger agreement. The agreement will see Casago acquire all of Vacasa’s outstanding shares at a price of $5.02 per share, subject to adjustments as set forth in the merger agreement.
The transaction aims to combine the strengths of both companies to create a leading rental property management platform that emphasizes local property management services aimed at homeowners. The merger is expected to improve the quality of service for homeowners and guests by leveraging the combined resources and expertise of both entities. Vacasa brings considerable scale to the merger, s InvestingPro shows trailing-twelve-month revenue of $949.94 million, though the company faces challenges with profitability and cash flow management. InvestingPro subscribers can access 13 additional key insights into Vaca’s financial health and market position.
Casag founder and CEO Steve Schwab expressed his delight at the merger, noting their shared commitment to providing exceptional service. Vacasa CEO Rob Greyber echoed those sentiments, saying the merger is a key step in focusing on owners, guests and local teams.
In addition to the merger, Roofstock, a prominent proptech platform, plans to invest in the combined company. Roofstock CEO Gary Beasley noted that the investment aligns with their mission to expand services and support the housing investment ecosystem.
The cash transaction represents a premium to Vacasa’s recent average share price and is expected to close in late first quarter or early second quarter 2025, subject to customary closing conditions and approval by Vacasa shareholders. Substantial existing shareholders Vacase, Silver Lake, Riverwood Capital and Level Equity will retain minority investments following the merger, and Roofstock will assume equity obligations.
Vacasa common stock will be delisted from the Nasdaq stock market upon completion of the merger, transforming the combined entity into a privately held company. Further details regarding the operational and organizational aspects of the merger will be announced after the closing of the transaction. With a current market capitalization of $59.84 million and moderate debt levels of $129.47 million, the merger comes at a crucial time for Vacasa. For detailed analysis and comprehensive insights on Vacasa and other companies in the vacation rental sector, investors can access the full Pro Research Report available at InvestingPro.
This merger announcement is based on a press release and is subject to all terms of the merger agreement, which Vacasa will file with the SEC. Financial advisory services for the transaction are being provided by Jefferies LLC for Casago and PJT Partners (NYSE: ) for the Special Committee of Vacasa’s board of directors. Legal advice is provided by Skadden, Arps, Slate, Meagher & Flom LLP for Casago and Vinson & Elkins LLP for the Special Committee, with Latham & Watkins LLP advising Vacas.
In other recent news, Vacasa Inc., a prominent vacation rental management platform, announced its financial results for the third quarter of 2024. Despite facing challenges in the industry, the company was able to secure nearly 400,000 guest reservations, generating more than 300 million USD for homeowners during peak season. However, these achievements were offset by a 19% decrease in the gross value of bookings compared to the previous year and a decline in the number of homes on the platform.
Needham, a major investment firm, adjusted their target price on Vacasa to $3.25, down from $5.00, while maintaining a buy rating on the stock. This adjustment was due to a reduction in Vacasa’s estimated earnings before interest, taxes, depreciation and amortization (EBITDA). Nonetheless, Needham remains hopeful about Vacasa’s future, citing signs of stabilizing average daily rates and the company’s shift toward a more decentralized operating model.
Along with these developments, Needham predicts a further 15% decline in the gross value of Vacasa bookings for 2025, following an estimated 19% decline in 2024. This is attributed to a continued decline in supply and a lower gross value of bookings per home. Despite these projections, Needham believes Vacasa can achieve breakeven EBITDA through cost reductions and operational efficiencies. This is part of the recent events shaping Vaca’s journey.
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