Expedia and HomeAway announced that they have made agreements for acquisition. Expedia will spend $3.9 billion to realize takeover, dealing with cash and stocks.

According to the terms of contact they signed, each HomeAway share amount to cash $10.15 and 0.265 share of common Expedia in view of its closing price on November 3rd.

Both of the boards of director came into a deal, but this deal needs to be approved by supervision institute. Expedia estimated this deal will be done by the first quarter of 2016.

Expedia is a famous US traveling website that subordinates to Worldwild Travel Exchange. It offers flight ticket reservation, car rental and over hotel reservation of 3,000 worldwide tour sites services.

HomeAway is an online service website that provides holiday house rentals. It becomes the world leading, online service provider for holiday house rentals after a series acquistions and strategic expansion. It established business for over 1.2 million rental properties in 145 countries.

HomeAway cooperated with Expedia in 2013, posting its holiday rental properties on Expedia’s website. Expedia availed of the partnership to penetrate European market to battle booking’s competition.

“The market scale of alternative accommodation reaches $100 billion. We have been cooperating with HomeAway for two years, it is reasonable to merge it into Expedia,” said Dara Khosrowshahi, CEO of Expedia.

“We have been transforming our business to a completely online booking platform and Expedia has profound experience in this field,”said Brian Sharples, CEO of HomeAway.