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PORTLAND, Ore. - Vacasa, Inc. (NASDAQ:VCSA), a prominent vacation rental management platform with annual revenue of $910 million, has amended its merger agreement with Casago, a leading vacation rental property management firm. According to InvestingPro analysis, Vacasa currently operates with moderate debt levels and faces challenges with cash burn, making this merger particularly significant. The revised terms increase the acquisition price to $5.30 per share in cash, removing certain price adjustment provisions.
The Special Committee of Vacasa’s Board, with advice from legal and financial experts, opted for Casago’s proposal over a competing $5.75 per share offer from Davidson Kempner Capital Management. The committee cited the superior certainty of Casago’s offer, which didn’t require amendments to Vacasa’s Tax Receivable Agreement—a condition Davidson Kempner couldn’t satisfy despite attempts. The decision comes as Vacasa’s stock has shown strong momentum, with a 28% return over the past six months.
Casago’s acquisition will encompass all outstanding shares held by Vacasa’s public stockholders. The company aims to finalize and distribute a final proxy statement to its shareholders promptly, targeting a transaction closure by the end of April.
Casago’s President, Joe Riley, expressed enthusiasm about the merger, highlighting a shared vision of empowering local teams and praising the Vacasa team’s talent and dedication as key motivators for enhancing their offer.
Vacasa shareholders are advised to read the forthcoming proxy statement, which will be filed with the SEC, for detailed information on the transaction.
Vacasa manages vacation rentals across North America and several other countries, offering homeowners income on their properties through advanced technology. It also provides inventory to major channel partners like Airbnb, Booking.com, and Vrbo.
The company’s decision to proceed with Casago follows careful evaluation of both proposals, prioritizing transaction certainty and shareholder interests. This news is based on a press release statement.
In other recent news, Vacasa, Inc. has received a buyout offer from Davidson Kempner Capital Management LP at $5.25 per share, surpassing the existing merger agreement with Casago, which stands at $5.02 per share. The Special Committee of Vacasa’s Board is tasked with evaluating the new proposal to determine if it is a superior offer. Despite the new proposal, Vacasa’s Board continues to recommend the merger with Casago, which is anticipated to close between the first and second quarters of 2025. Analysts from BTIG have maintained a Neutral rating on Vacasa, noting the full valuation of the company amidst declining revenue and ongoing losses. Meanwhile, Needham analysts have downgraded Vacasa from Buy to Hold following the merger announcement, reflecting the new strategic direction. The merger agreement with Casago includes an investment from Roofstock, aiming to leverage combined resources for enhanced service delivery. Upon completion, Vacasa’s stock will be delisted from Nasdaq, and the company will become part of a privately held entity. The merger is subject to shareholder approval, with notable stakeholders like Silver Lake and Riverwood Capital maintaining minority investments.
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