Marriott buys ILG for $4.7B: Timeshare News

Marriott Vacations Worldwide Corporation (NYSE: VAC) and Interval Leisure Group, known as ILG (Nasdaq: ILG) announced a merger today. Marriott will buy 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.  Further, it will hold over 650,000 million combined owners and seven luxury brands. As a result, this makes it the largest luxury brand for timeshare resorts.

ILG is the parent company of Interval International, a membership-based timeshare trading group boasts over 2 million members with affiliated resorts in over 80 countries. Their family of companies doesn’t stop there, which includes 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 later from Chief Executive Officer Craig Nash. He stated 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.