PARSIPPANY, NJ Cendant Corp.said it will acquire Fairfield Communities, a vacation ownership company.
The two companies signed a definitive agreement for Cendant to acquire all of the outstanding common stock of Fairfield Communities at $15 per share, or approximately $635 million in total.
At least 50% of the consideration will be in cash; the balance will either be in cash or Cendant common stock, at Cendants election. The final acquisition price may increase to a maximum of $16 per share depending on a formula based on the average trading price of Cendant stock over a 20 trading day period prior to the closing of the transaction. The acquisition is expected to be immediately accretive to Cendant earnings and is expected to close in early 2001. (11/2/00)