The struggling Portland-based vacation rental company had considered a competing bid from a hedge fund.
Portland-based vacation rental company Vacasa has agreed to be acquired by competitor Casago for around $128 million.
The sale, which is subject to approval by shareholders, makes Vacasa the second publicly-held Portland company to be sold in the past week after Radius Recycling agreed to terms with Toyota Group.
The Vacasa deal values the company at far less than the $4 billion market valuation it enjoyed after the company went public in 2021.
Founded in 2009, Vacasa experienced fast and steady growth in its first decade, opening a fashionable headquarters in Portland’s Pearl District in 2018. But Vacasa has struggled since going public, losing 97% of its value in three years. Changes in customer and property owner behavior led to rounds of layoffs and a threat of being delisted from the NASDAQ stock exchange.
In early 2024, the company’s board began to explore sale options and in December, it announced it would sell to Phoenix-based Casago for a price of $5.02 per share.
With around 38,000 rentals under management, Vacasa is the largest company of its type in the U.S., though it lost 10% of its rentals and 17% of revenue in the past year. Casago, the smaller of the two companies, manages about 5,000 vacation rentals in North America and Central America.
The Portland Business Journal reports that though Vacasa and Casago both manage vacation rentals, Casago began exploring a franchise model in 2019, allowing local operators a degree of freedom in management. Vacasa manages and lists vacation rentals, and provides maintenance services for the owners of those properties.
The companies said in a joint statement in December: “Combining Casago and Vacasa will create an unmatched vacation rental management platform, pairing the advantages of an international brand with the personalized care of local management.”
In February, hedge fund Davidson Kempner Capital Management made a competing offer of $5.75 per share. But Monday, Vacasa announced it had accepted an amended proposal by Casago of $5.30 per share, saying Davidson Kempner’s offer was not superior despite the higher share price. A special committee of Vacasa’s board of directors selected Casago’s proposal and the board went along with the recommendation.
“The decision to enhance our offer indicates our commitment to closing this transaction as quickly as possible,” Casago president Joe Riley writes in a statement. “Homeowners and industry partners have responded positively to the December 30th merger announcement, and to our shared vision of empowering local teams to provide exceptional hospitality through an owner centric approach. These past weeks have also affirmed our confidence in the Vacasa team … We could not be more impressed with the Vacasa team, and are excited to roll up our sleeves and work alongside them post close!”
The merged entity will take Vacasa private. Property analytics firm Roofstock will invest in the merged company and “provide strategic guidance,” according to a Vacasa statement. Both a franchise model and a company-led model will have a place in the new entity, Vacasa said in information provided to employees.
“This merger is a natural next step in Vacasa’s journey over the past year, sharpening our focus on owners, guests, and our local teams that take care of them every day,” Vacasa CEO Rob Greyber writes in the statement. “By combining with Casago, a company that shares our vision of locally-empowered, homeowner-focused property management, we’re accelerating our progress on that path.”
Vacasa officials encouraged shareholders to approve the deal by April.
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