Expedia Acquires All Assets of Classic Custom Vacations

12th Mar 2002

Expedia, Inc.  (Nasdaq: EXPE) announced today that it completed its acquisition
of substantially all the assets of Classic Custom Vacations, a subsidiary of
Classic Vacation Group, Inc. (Amex: CLV) for an aggregate purchase price of
about $48 million, plus the assumption of approximately $30 million in
The acquired liabilities are principally working capital
accounts, such as customer deposits, which are expected to require little or
no additional funding by Expedia(R).
As part of the acquisition process, last month Expedia purchased the
outstanding debt of CVG with $47 million in proceeds from the sale of
936,815 Expedia common shares to USA Networks, Inc.  Expedia purchased the
assets of CCV for approximately $1 million in cash plus the cancellation of
the outstanding CVG debt.  Expedia`s cash payment was reduced from the earlier
estimate of $5 million as CVG retained approximately $4 million in cash
originally expected to be part of the acquisition.
Classic Custom Vacations
is a leading wholesaler of premier vacation
packages to Hawaii, Mexico, North America, Europe and the Caribbean.  Expedia
intends to continue selling vacations through traditional travel agents under
its subsidiary, Classic Custom Vacations, Inc.
“This acquisition broadens Expedia`s presence in the overall travel market
and expands its position as both a merchant of travel inventory and a marketer
of vacation packages,” said Richard N. Barton
, president and chief executive
officer of Expedia, Inc.  “Expedia will bring to Classic the financial and
technological resources to provide even better service to its travel agents,
who in turn will be able to better serve their clients.”

Related stories on ITN:

(21/02/2002) Expedia & USA Networks Agreement

(06/02/2002) Expedia Shareholders Approve USA Networks Transaction

Expedia acquires vacation company assets




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