Expedia has announced it has entered into a definitive agreement under which it will acquire Orbitz Worldwide, including all of Orbitz Worldwide’s brands, for $12.00 per share in cash.

The deal represents an enterprise value of approximately $1.6 billion, and a premium of approximately 29 per cent over the volume weighted average share price for the five trading days up to and including February 11th, 2015.

The boards of directors of both companies have approved the transaction, which is subject to approval by the shareholders of a majority of Orbitz Worldwide’s common stock and other customary closing conditions, including applicable regulatory approvals.

The board of directors of Orbitz Worldwide received a fairness opinion from Qatalyst Partners and has recommended that its stockholders vote in favour of the merger.

“We are attracted to the Orbitz Worldwide business because of its strong brands and impressive team.

“This acquisition will allow us to deliver best-in-class experiences to an even wider set of travellers all over the world,” said Dara Khosrowshahi, president, Expedia.

“From the flagship Orbitz.com brand, to other well-known consumer brands such as CheapTickets, ebookers and HotelClub and the business-to-business brands Orbitz Partner Network and Orbitz for Business, the Orbitz Worldwide team has built a devoted customer base and we look forward to welcoming them to the Expedia family.”