Timeshare developer Diamond Resorts acquires rival for $85 million

Las Vegas-based timeshare developer Diamond Resorts International acquired a small rival for $85 million, giving the company ownership of nine properties primarily in Canada, California, Florida and Mexico.

Diamond Resorts said the acquisition of Intrawest Resort Club Group is expected to be completed in the first three months of next year.

"We are acquiring a business with a very strong member base and a set of high quality resorts that will complement our portfolio, and we look forward to building a mutually beneficial relationship with Intrawest beyond this transaction," Diamond Resorts CEO David Palmer said in a statement.

The purchase follows October's acquisition of five East Coast properties owned by Gold Key Resorts.

"We are confident that acquisitions such as these will enhance our financial profile and create long-term shareholder value," Palmer said.

The deal will give Diamond Resorts more than 100 properties worldwide.

J.P. Morgan gaming analyst Joe Greff, who also follows companies in the lodging industry, said deal will provide increased cash flow and cost savings to Diamond Resorts.

"Overall, we view this transaction favorably and see an opportunity for Diamond Resorts to realize benefits from cost synergies and cross-sell potential to Intrawest's existing points-based owner-families, much like what we expect from its recent acquisition of Gold Key Resorts," Greff said.