Tripadvisor (TRIP) and Liberty TripAdvisor Holdings said Thursday that they signed a merger agreement in which Tripadvisor will acquire Liberty TripAdvisor in a transaction valued at about $435 million.

Under the deal, series A and B common shares of Liberty TripAdvisor will be converted into the right to receive $0.2567 in cash per share, totalling about $20 million, while Liberty TripAdvisor's 8% series A cumulative redeemable preferred stock will be converted into the right to receive a total of nearly $42.5 million in cash and about 3 million common Tripadvisor shares, according to a joint statement.

The companies also said Liberty TripAdvisor's $330 million 0.50% exchangeable senior debentures will be repaid as part of the transaction. In addition, Tripadvisor plans to repurchase 27 million of its shares held by Liberty TripAdvisor upon completion of the merger.

Tripadvisor said the acquisition will simplify its capital structure.

Both companies' boards have approved the merger deal and closing is expected in Q2 2025, subject to certain customary conditions, according to the statement.