HotelPlanner, Reservations.com To Merge And Go Public In SPAC Deal: WSJ

Hotel-deal booking specialists HotelPlanner and Reservations.com are close to signing a merger deal and go public via Astrea Acquisition Corp ASAX, a special purpose acquisition company, The Wall Street Journal reported on Monday. 

What Happened: The deal estimated to be valued at $685 million could be announced this week and the combined company would still be called HotelPlanner.

Current investors are still expected to own a majority of the company, which would have about $105 million left over in cash proceeds.

SPACs have gained in popularity in the last one year or so drawing big-name underwriters and investors and have raised billions of dollars in IPO money.

See Also: Luxury Travel Subscription Company Inspirato Going Public With Growing Market And Pent-Up Demand

Why It Matters: HotelPlanner was founded in 2004 and competes with bigger rivals in a crowded market. It offers group-booking deals to Expedia Group Inc EXPE, which in turn has an open travel alliance (OTA) with leading hotel chains such as Marriott International Inc MAR and Hilton Hotels Corp HLT.

HotelPlanner, which also onws the business-focused website Meetings.com, expects the combined company to deliver about $170 million in revenue next year.

The talks come at a time when global travel has just begun to take flight again but fears of a third COVID-19 wave may thwart that rebound. 

Price Action: ASAX shares closed 0.21% lower at $9.21 on Monday.

For news coverage in French, Italian, or Spanish, check out Benzinga FranceBenzinga Italia, or Benzinga España.

Posted In: M&ANewsIPOsTechMediaHotePlannerMeetings.comReservations.comSPACSPACsSpecial Purpose Acquisition CompanyTravel Stocks
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...