SPRINGFIELD, Mo. (AP) - TravelNow, a popular Internet travel site based in Springfield, is being bought by a Texas firm for $47.4 million, the companies have announced.
Dallas-based Hotel Reservations Network said Thursday it plans to acquire outstanding shares of TravelNow, but will leave its employees and management in place.
TravelNow provides travel reservations through its Web site and more than 10,000 affiliates who connect to the company's proprietary reservation system.
The 5-year-old company had a net loss of $1.79 million in its 1999 fiscal year, after posting net income of $27,484 in its 1998 fiscal year.
At the beginning of 2000, TravelNow secured $4.5 million in venture capital in exchange for stock to finance growth in personnel, expand office space and improve technology.
HRN was a shareholder in TravelNow previously and regulatory filings show the company purchased one million shares of TravelNow stock on Dec. 18, paying $3 per share. The two companies entered into a confidentiality agreement on Dec. 20 to pursue a possible acquisition.
HRN will purchase TravelNow's outstanding shares at $4.16 cents per share. TravelNow's stock closed Thursday at $4.0625 in trading on the Nasdaq exchange.
The acquisition is expected to close by the end of March.
"I think the important thing for TravelNow is we now have the resources to compete with the large worldwide companies, online and off-line," said Jeffrey Wasson, 27, CEO and founder of the company.
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