American vacation rental management platform Vacasa is set to purchase Wyndham Vacation Rentals from Wyndham Destinations for approximately $162 million. Vacasa and Wyndham Destinations have entered into a definitive agreement for the deal, which is expected to close in the fall subject to customary closing conditions.
The purchase, which is complementary to Vacasa’s current inventory, will boost the company’s portfolio to more than 23,000 homes across North America, Central and South America, Europe and Africa. Signature Wyndham Vacation Rentals’ regional and local brands under the new Vacasa umbrella will include Hatteras Realty, ResortQuest, ResortQuest Whistler, Smoky Mountains Property Management, Kaiser Realty, Corolla Classic Vacations and Vacation Palm Springs.
“After conducting a rigorous strategic review process that generated strong interest from multiple parties, we are confident that Vacasa is the ideal buyer,” Michael D. Brown, president/CEO of Wyndham Destinations, said in a statement. “In the past decade, we grew our vacation rental business to prominent leadership in North America. We determined that selling Wyndham Vacation Rentals is the best option to return value to shareholders and enable the long-term growth of our company through vacation ownership and exchange. We remain so confident in the future of this business and the benefits of a long-term relationship with Vacasa that we will have an equity interest in Vacasa after the sale.”
In the next 12 months, Vacasa expects to achieve more than $1 billion in gross bookings and an excess of $500 million in net revenue.
Vacasa will finance the acquisition through a combination of cash and equity. The sale will be comprised of $45 million cash at closing, up to $30 million of Vacasa equity, and the remaining balance in either seller financing or cash at closing.
Vacasa expects to complete the full integration with Wyndham Vacation Rentals by fall 2020.