Casago (a vacation rental property management company) and Vacasa (a leading vacation rental management platform in North America) announced they have entered into a definitive agreement under which Casago and Vacasa will combine in a transaction in which Casago will buy all outstanding shares of the company held by public stockholders for $5.02 per share, subject to adjustment as outlined in the merger agreement.
The per-share purchase price represents a premium of 28% and 60% over Vacasa’s 30-day and 90-day volume-weighted average price per share, respectively, as of December 27, 2024, the last trading day before the execution of the agreement.
This deal combines the strengths of both companies. It accelerates progress toward a shared vision: empowered local teams, providing home care and revenue for homeowners, and offering superior hospitality for guests. Combining Casago and Vacasa will create an unmatched vacation rental management platform, combining the advantages of an international brand with the personalized care of local management.
Plus, Roofstock (a leading proptech platform) plans to invest in and offer strategic guidance to the combined company, leveraging its decade of experience using technology to enhance property management capabilities, customer experience and liquidity for residential property investors. And Roofstock brings real estate expertise through its service offerings and software solutions, including helping 300,000+ property owners with nearly 1 million units optimize the performance of their rental properties.
Existing Vacasa shareholders Silver Lake, Riverwood Capital and Level Equity will continue to have minority investments in the combined company following the closing. Roofstock has provided Casago with equity commitments for the transaction and will be investors in the combined company. And the deal, which is expected to be completed towards the end of the first quarter or the early part of the second quarter of this year, is subject to certain customary closing conditions, including approval by Vacasa’s shareholders.
Upon completion of the transaction, Vacasa’s common stock will no longer be publicly listed on the Nasdaq, and the combined company will become a privately held company.
Jefferies is serving as financial advisor and Skadden, Arps, Slate, Meagher & Flom is acting as legal advisor to Casago in connection with the transaction. PJT Partners is serving as financial advisor and Vinson & Elkins is acting as legal advisor to the Special Committee of the Vacasa Board of Directors. Latham & Watkins is acting as legal advisor to Vacasa.
KEY QUOTES:
“Casago has always been committed to delivering personalized, locally-empowered service to homeowners, and exceptional experiences to guests. We’re excited to merge with Vacasa, a company that shares our dedication to excellence. Together, we will strengthen our ability to deliver consistent service quality on a global scale, leveraging our combined resources, and expertise to better serve our homeowners, guests and partners.”
- Casago founder and CEO Steve Schwab
“This merger is a natural next step in Vacasa’s journey over the past year, sharpening our focus on owners, guests, and our local teams that take care of them every day. By combining with Casago, a company that shares our vision of locally-empowered, homeowner-focused property management, we’re accelerating our progress on that path. We are pairing national scale with local expertise, empowering entrepreneurial teams to set a new standard in vacation rental property management.”
- Vacasa CEO Rob Greyber
“We are excited to be a part of what we believe should be the category-defining company in the vacation rental space. This investment is consistent with our mission of expanding beyond our historical focus on long-term single-family rentals to help power the broader residential investment ecosystem for investors large and small.”
- Gary Beasley, co-founder and CEO of Roofstock
