Casagoa Phoenix-based vacation rental property management company, is acquiring Vacasais a Portland-based competitor with nearly eight times the number of homes in its portfolio.
Three years later, the deal takes Vacasa private Merged with TPG Pace Solutions to go public via special purpose acquisition company (SPAC).
When it goes public in 2021, Vacasa will be valued at $4.4 billion, with quarterly revenue of $330 million and adjusted EBITDA of $57 million. But over the next few years, the company struggled. Full-year revenue in 2023 is down 6% from 2022. As of its latest Q3 2024 earnings report, Vacasa reported revenue of $314 million, down 17% year over year, and adjusted EBITDA of $69 million, down from $74 million in Q3 2023. Vacasa suffers two rounds of layoffs This year it is working on restructuring its structure. exist Same time as layoffs in FebruaryChief operating officer John Banczak leaves the company. Banczak is an industry veteran and co-founder of Turnkey Vacation Rentals, a Acquired by Vacasanow shows on his LinkedIn profile that he serves as Casago's chief operating officer starting this month.
Founded in 2001, Casago manages nearly 5,000 properties in 72 cities in the United States, Mexico, Costa Rica and the Caribbean, while Vacasa manages 38,000 properties, according to its latest letter to shareholders.
Casago operates a franchise model, with local property managers in each market serving homeowners and guests. That's Casago's advantage, said D. Brooke Pfautz, founder and CEO of property manager marketing agency Vintory.
“I have long believed that the franchise model is the key to effectively scaling a national team,” he said.
“We’ve seen the proverbial movie before, and the heavy corporate office approach simply doesn’t work. ResortQuest, Wyndham, Vacasa, and many others have failed. In contrast, in my opinion, empowering local decision-making and fostering True local ownership with a P&L is a proven model for building successful and sustainable national impact.”
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Casago will pay $5.02 per share of Vacasa's outstanding shares, a premium of nearly 32% to the closing price of $3.81 on Friday's last trading day. Existing Vacasa shareholders Silver Lake, Riverwood Capital and Level Equity will continue to make minority investments in the combined company after the transaction closes, the companies said.
also, roofing materialsis a platform that helps investors buy, sell and manage single-family rental properties and will invest in and provide strategic guidance to the combined Casago-Vacasa company.
“Casago has always been committed to providing personalized, localized service to homeowners and an exceptional experience to guests. We are excited to merge with Vacasa, a company that shares our commitment to excellence,” said Casago Founder and CEO Steve Schwab said. “Together we will strengthen our ability to deliver consistent service quality globally, leveraging our combined resources and expertise to better serve our homeowners, guests and partners.”
“This merger is a natural next step in Vacasa’s journey over the past year, which brings us to a greater focus on our owners, guests and the local teams who care for them every day. Casago shares our vision for Locally empowered, homeowner-focused property management, and by merging with Casago, we are accelerating progress on this path. “We are combining national scale with local expertise to help entrepreneurial teams set new standards in vacation rental property management. “
The transaction is expected to close by the end of the first quarter or early in the second quarter of 2025.
Earlier this month, Vacasa founder Eric Breon resigned as CEO in 2020. New property management company Fairly launched.
