Cendant to buy Orbitz for $1.25 billion

Business Travel News reports that Cendant Corp. and Orbitz today reached a definitive agreement for Cendant to buy all the shares of Orbitz for $27.50 per share in cash or $1.25 billion. The parties to the deal, which is subject to regulatory and other approvals, expect to complete it in November. The acquisition was "not completely surprising," said Ian Wheeler, vice president of marketing for global distribution system competitor Amadeus, "Cendant has gone through a process of vertical integration, and this is in keeping with that strategy. What is unclear is what this means to the marketplace. Will Orbitz somehow be integrated, or will it continue business as usual? If the Cendant-Orbitz deal goes through, you will see more of these types of deals."

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