China-headquartered online travel agency Ctrip agreed yesterday to acquire UK-based online travel search platform Skyscanner in a £1.4bn ($1.74bn) deal that will allow internet company Yahoo Japan to exit.
Founded in 2007, Skyscanner operates an online platform that enables users to search for flights, hotels and vehicle rentals and compare prices from a range of different providers. It has about 60 million monthly active users and is accessible in more than 30 languages.
The acquisition will largely be made up of cash with the rest of the payment made through Ctrip shares and loan notes. Skyscanner will operate as an independent subsidiary of Ctrip once the deal closes.
Yahoo Japan invested in Skyscanner as part of a $192m round in January this year that reportedly valued the company at $1.6bn. Artemis, Baillie Gifford, Vitruvian Partners and the Malaysian government-backed Khazanah Nasional Berhad also took part in the January round.
Growth equity firm Scottish Equity Partners had invested £2.5m in the company in 2007, and venture capital firm Sequoia Capital added an undisclosed amount in 2013 in an investment that valued it at $800m.
James Jianzhang Liang, co-founder and executive chairman of Ctrip, said: “We are excited to welcome Skyscanner into the Ctrip group. Ctrip and Skyscanner share the same passion and dedication in providing travelers around the world with better services.
“This acquisition will strengthen long-term growth drivers for both companies. Skyscanner will complement our positioning at a global scale, and we will leverage our experience, technology and booking capabilities to help Skyscanner.”