Given that HomeAway and Expedia have worked as distribution partners for two years, Cramer doesn't expect it will be difficult for the two companies to integrate.
"HomeAway is worth more to a company like Expedia than it was to itself," Cramer said. (Tweet This)
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Overall, the cost synergies from the deal are expected to create an additional $350 million in earnings before interest, taxes, depreciation and amortization in 2018. It will also give Expedia access to HomeAway's 1.2 million listed properties.
At the same time, Cramer expects the deal to make Expedia much more competitive versus Priceline. Priceline has steadily invested in the vacation rental space for years. Cramer believes this move will push Expedia into the top position.
Even though Cramer likes this deal, he acknowledged that the entire online travel space has taken a hit, thanks in part to a strong dollar. However, now that the dollar is becoming weaker versus many other major currencies, he thinks it could provide a boost to Expedia's numbers.
Ultimately, Cramer thinks that at just 15 times next year's earnings estimates, this is a terrific entry point for Expedia.
"Expedia is going to benefit enormously from this HomeAway deal, and I suggest buying the stock before the rest of the market realizes just how positive and powerful this story could be," Cramer said.