Expedia To Acquire Classic Custom Vacations

BELLEVUE, WA— Expedia said it has signed a definitive agreement to acquire the assets of Classic Custom Vacations (CCV) from Classic Vacation Group for an aggregate price of approximately $52 million in cash and Expedia stock, plus the assumption of certain liabilities. Classic Custom Vacations is a leading wholesaler of premier vacation packages to Hawaii, Mexico, North America, Europe and the Caribbean. CCV said it expects to report a profitable 2001, with approximately $300 million in gross travel sales. After the closing of the transaction, Ron Letterman will remain as president of Classic Custom Vacations, a division of Expedia, and Debbie Lundquist, currently Classic CFO, will be named COO of the division. Rosa Buettner, svp sales; Lois Shore, svp marketing; Larry Flinders, evp operations; and Travis Shook, CIO, will continue with the division in their present capacities. Classic’s offices will remain in San Jose, CA. After the acquisition, Classic Custom Vacations will continue to operate as a wholesaler, selling its vacations through traditional travel agents, said Expedia.