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Skift Take
No one will be rooting harder for the success of the Vacasa SPAC than TurnKey’s investors, who were paid mostly in Vacasa common stock — and for a value at this juncture that’s lower than was TurnKey’s total venture funding.
In one of the top handful of online travel and short-term rental deals of the year, Vacasa paid $618.8 million to acquire rival property management company TurnKey Vacation Rentals, with the vast majority of it transacted in Vacasa common stock.
The purchase price, which had been disclosed in financial filings in mid-November, hasn’t been reported in the press until now.
In the deal, which closed in April, Vacasa paid TurnKey just $45 million in cash, and issued $573.8 million in Vacasa common stock to consummate the transaction. When the merger closed, Portland, Oregon-based Vacasa said the combined entity would manage 30,000 vacation rentals in North America, Belize, and Costa Rica. Austin-based TurnKey contributed some 6,000 properties to the mix.
So it’s clear that TurnKey’s former shareholders have a lot riding on Vacasa’s pending public company debut in a SPAC, or special purpose acquisition company, merger. While the TurnKey acquisition was tentatively valued at $618.8 million, since its founding in 2009 Vacasa had received $634.5 million in funding from the likes of Silver Lake and Riverwood Capital, among others, according to Crunchbase.
Depending on how Vacasa’s stock price performs, one could consider the TurnKey acquisition a humbling one for Turnkey, which had raised more funding than the nominal sale price.
Vacasa pegged its equity value with TurnKey in the fold at $3.96 billion.
In valuing TurnKey’s intangible assets, Vacasa estimated that the fair market value of TurnKey’s homeowner contracts were $102.3 million, database and listings were $3.4 million, and trademark and brand name were worth $1.9 million for a total of $107.6 million.
On a pro forma basis, meaning as if TurnKey had been acquired at the start of fiscal year 2020, Vacasa stated that during the first nine months of 2021 the combined entity would have notched a net loss of $33.3 million on $728.5 million in revenue.
In addition to the TurnKey deal, in the first nine months of the year, Vacasa executed “22 separate portfolio transactions,” for $117.9 million, the company said.
In larger online travel deals in 2021, Booking Holdings announced deals to acquire eTraveli Group for $1.8 billion and Getaroom for $1.2 billion , and Expedia Group sold its corporate travel unit Egencia to American Express Global Business Travel for a 14 percent stake valued at $750 million.
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