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February 12, 2015 8:58 AM EST

Expedia has agreed to purchase rival online travel company Orbitz Worldwide — which owns and — for about $1.33 billion, the company said Thursday.

Expedia will shell out $12 a share in cash, representing a premium of almost 25% over Orbitz’s closing price Wednesday.

“We are attracted to the Orbitz Worldwide business because of its strong brands and impressive team,” said Dara Khosrowshahi, Expedia’s President and CEO. “This acquisition will allow us to deliver best-in-class experiences to an even wider set of travelers all over the world.”

Expedia is looking to increase its customer base in a highly competitive industry.

Orbitz also has successful business-to-business brands that attracted Expedia, including the Orbitz Partner Network and Orbitz for Business. The deal is subject to approval by the shareholders and other customary closing conditions.

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