Marriott Vacations Worldwide Corporation (NYSE: VAC) and Interval Leisure Group, known as ILG (Nasdaq: ILG) announced a merger today, whereas Marriott will purchase the outstanding shares of ILG in a cash-and-stock deal estimated at $4.7 Billion.
The combined company will become the global leader in the timeshare industry, trading under NYSE:VAC. It will hold over 650,000 million combined owners and seven luxury brands, making it the largest luxury brand for timeshare resorts.
ILG is the parent company of Interval International, a membership based timeshare trading group boasting over 2 million members with affiliated resorts in over 80 countries. Their family of companies doesn’t stop there, including Vistana Signature Experiences (formerly Starwood), Hyatt Vacation Ownership and more.
“This transaction will combine two of the premier global vacation ownership companies to create a more diversified company with significantly enhanced marketing potential and scale to drive sales growth and value for both MVW and ILG shareholders,” said Stephen P. Weisz, President and Chief Executive Officer of Marriott Vacations Worldwide.
It comes as a pleasant surprise that ILG has agreed to this merger, after last year’s buzz surrounding FrontFour Capital’s announcement of their 2% interest in ILG, followed by pressures to engage in discussion with Marriott Vacations.
ILG’s shareholders heard from ILG Chief Executive Officer Craig Nash stating that this deal “provides them with immediate and compelling cash value and the opportunity to meaningfully participate in the long-term growth potential of a powerful combined company.”
ILG shareholders will receive $14.75 in cash and 0.165 shares of Marriott Vacations Worldwide stock for each ILG share.
This merger is expected to result in an annual savings of $75 million.
What does this merger mean for owners and member? Stay tuned and find out! More breaking news to come on TimesharesOnly.com.