Key Detials
Vacasa has agreed to an increased acquisition offer from Casago, which raised its bid from $5.02 to $5.30 per share in cash. The deal is expected to close by the end of next month.
This revised agreement follows a competing offer from Davidson Kempner Capital at $5.75 per share. Despite the higher bid, Vacasa’s special committee favored Casago’s offer, citing "superior certainty" that the deal would be completed.
By acquiring Vacasa, Casago—a Phoenix-based vacation rental property management company—is taking over a competitor with nearly eight times as many homes under management.
Casago, founded in 2001, manages nearly 5,000 properties across 72 cities in the U.S., Mexico, Costa Rica, and the Caribbean. Vacasa, in contrast, manages 38,000 properties but has struggled in recent years.
When Vacasa went public in 2021, it was valued at $4.4 billion. As of market close on March 19, 2025, its valuation had dropped to $123 million. The company has undergone two rounds of layoffs last year and seen significant turnover in senior leadership.
Our Analysis
The core difference between these two companies lies in their business models. Casago operates on a franchise model, empowering local property managers to run operations with responsibility for success. Vacasa, on the other hand, follows a more centralized corporate structure.
Casago’s approach combines national scale with local expertise, fostering local ownership and accountability at the market level. This model has historically proven more sustainable for building a strong national presence.
