Travel giant Expedia is lining up another big purchase with the announcement it intends to acquire vacation rental site HomeAway.
A cash and stock deal for the company is valued at $3.9 billion.
HomeAway’s brands include the HomeAway site and VRBO (Vacation Rental By Owner), with more than one million vacation listings globally.
"We have long had our eyes on the fast growing $100 billion alternative accommodations space and have been building on our partnership with HomeAway, a global leader in vacation rentals, for two years," said Expedia CEO Dara Khosrowshahi.
"Bringing HomeAway into the Expedia family and adding its leading brands to our portfolio of the most trusted brands in travel is a logical next step."
HomeAway surged by more than 20% in late trading after the announcement.
"We’re eager to benefit from Expedia’s distribution, technology and expertise, which will allow us to provide an even better product and service experience for our owners, property managers and travelers," said HomeAway CEO Brian Sharples in a statement.
"In this way I believe our combination with Expedia will turbo-charge our growth and industry leadership for many years to come."
The deal is expected to close during the first quarter of 2016.
