Casago to Acquire Vacasa for $128 Million and Take It Private

Privately held Casago and Vacasa entered into an agreement in which Casago would acquire all of the larger property management company’s outstanding public shares for around $128 million, and the merged entity would take Vacasa private.

At the same time, pro-tech company Roofstock intends to invest in the combined company “and provide strategic guidance,” the announcement stated.

“This merger is a natural next step in Vacasa’s journey over the past year, sharpening our focus on owners, guests, and our local teams that take care of them every day,” said Vacasa CEO Rob Greyber in a statement. “By combining with Casago, a company that shares our vision of locally-empowered, homeowner-focused property management, we’re accelerating our progress on that path.”

He said the combined company will “set a new standard in vacation rental property management.”

Casago, which manages around 5,000 vacation rentals in the U.S., Mexico, Costa Rica and elsewhere in the Caribbean, is the smaller of the two property management platforms. Casago has been trying to build its brand in part through franchising deals with local property management company partners.

In information provided to employees, Vacasa said both the franchise model and the “company-led model” would have a place in the combined companies. “The franchise model allows a local operating partner (i.e., franchisee) to own their local business while getting the benefit of being associated with an international brand and using a standardized platform and technology,” Vacasa told employees.

Casago is based in Arizona and Vacasa is headquartered in Portland, Oregon.

Vacasa is the largest vacation rental manager in the U.S. In total, it manages 38,000 homes in the U.S., Belize, Canada, Costa Rica, and Mexico.

Under the terms of the deal, Vacasa public shareholders would receive $5.02 per share in cash, but that figure is subject to adjustment.

Current Vacasa shareholders Silver Lake, Riverwood Capital and Level Equity would continue to hold minority stakes in the combined company after the deal closes, which is expected in late March or early April.

“Casago has always been committed to delivering personalized, locally empowered service to homeowners, and exceptional experiences to guests,” Casago founder and CEO Steve Schwab said in a statement. “We’re excited to merge with Vacasa, a company that shares our dedication to excellence. Together, we will strengthen our ability to deliver consistent service quality on a global scale, leveraging our combined resources and expertise to better serve our homeowners, guests and partners.”

Vacasa has been struggling financially since it went public in a SPAC deal in late 2021. It has been facing homeowner churn for the past couple of years with the 38,000 under management at the end of the third quarter representing a loss of 4,000 homes over the past year.

It notched $59 million in net income in the third quarter on $314 million in revenue, a 17% year over year drop.

The Vacasa board began exploring strategic alternatives in early 2024. A Vacasa special committee recommended that the company approve the merger with Vacasa, and the board agreed and recommended that shareholders accept the agreement.

Vacasa told employees the two companies are planning their integration so it couldn’t share any information on what would happen to Vacasa executives at this time.