V
acation rental companies Vacasa and Casago are merging later this year through a stock purchase that will take the new company private. The deal was announced last week, with more details emerging about Casago's acquisition of Vacasa's Outer Banks operations.

    Casago plans to sell off some local properties and enter into franchise agreements with the new owners, following its existing business model. This move is expected to affect multiple locations, but specific details have not been disclosed.

    The merged company will be led by Casago founder Steve Schwab, who expressed excitement about combining Vacasa's global scale with Casago's localized approach. "We're strengthening our ability to deliver consistent service quality on a global scale," he said.

    Casago manages around 5,000 vacation rentals worldwide, while Vacasa has over 969 properties in the Outer Banks and employs 223 people locally. The merger is seen as a natural step for Vacasa, which has been sharpening its focus on owners, guests, and local teams.

    Roofstock, an online property management platform, will invest in and provide strategic guidance to the combined company. "We're excited to be part of what we believe should be the category-defining company in the vacation rental space," said Roofstock CEO Gary Beasley.

    Under the terms of the merger agreement, Vacasa stockholders will receive $5.02 per share in cash upon completion, totaling around $128 million. The deal is expected to close by the end of the first quarter or early second quarter of 2025, subject to shareholder approval and other customary conditions.

    Vacasa has been struggling financially since going public through a SPAC deal in late 2021. The company laid off over 1,300 workers last year and has faced homeowner churn, with a loss of 4,000 homes under management over the past year.