Booking platform HotelPlanner, traqvel agency Reservations.com and Astrea Acquisition announced today that they have entered into a definitive three-way merger agreement for a business combination.
The transaction implies a pro forma enterprise value of $567.1 million for the combined companies, or 3.3x HotelPlanner’s estimated 2022 revenue of approximately $170 million, and an implied equity market capitalization of approximately $687.9 million. The transaction is expected to provide HotelPlanner with more than $120 million in cash proceeds to its balance sheet, assuming no redemptions.
Existing HotelPlanner and Reservations.com owners have agreed to roll-over approximately 93% of their ownership and expect to retain approximately 68% ownership following consummation of the business combination. Secondary proceeds of $35 million are primarily intended to effectuate the transaction between Reservations.com and HotelPlanner.
The transaction is expected to position the combined company to capitalize on expected increased demand for individual, group, and corporate travel and to invest to drive accelerated growth, expand internationally and pursue M&A opportunities.
Upon completion of the business combination, which is expected to occur in the fourth quarter, the combined travel technology company will operate as HotelPlanner, and will list on the Nasdaq under HOTP. Read more.
