Online booking service Expedia is buying a majority stake at German hotel booking and search website Trivago for around $628 million in cash and stock. Trivago is planning to expand their presence in Europe.
Expedia’s stake in Trivago will be around 61.6% after the transaction. Expedia is paying 434 million euros in cash and 43 million euros in common stock. Trivago’s co-founders and management team will continue to operate the website. Trivago delivers search results for more than 600,000 hotels from about 140 booking sites.
Internet travel sales may hit around $151.9 billion by 2016 from $107.4 billion in 2011 according to EMarketer. Another major travel acquisition took place last month when Priceline.com agreed to buy KAYAK for $1.8 billion in cash and stock. Priceline.com’s sales will be growing 21% this year to $5.25 billion according to Bloomberg. Expedia’s revenue is expected to grow 16% to $3.99 billion this year.
Trivago’s sales have doubled annually since 2008 and they expect to deliver 100 million in net revenue this year. The Trivago deal is expected to close in the first half of 2013.