China’s Ctrip acquires Scotland’s Skyscanner for $1.74 billion

Skyscanner is hugely popular among travelers and has an active customer base of 60 million users.

Scotland-based travel search company Skyscanner Holdings Ltd has agreed to be bought over by China’s biggest online travel company, Ctrip.com International Ltd. Ctrip has valued Skyscanner at $1.74 billion (1.4 billion pounds).

With the news hitting the market, Ctrip’s shares rose by 9.2% to $44.75 in extended trading.

Skyscanner enables travelers to search and compare flights, hotels and car rentals across these offerings provided by players in these segments. Skyscanner’s site has a customer base of 60 million active users and its services are available in 30 languages.

The company was reported exploring an initial public offering or a sale.

In January the company was valued at $1.6 billion in a funding round where it raised 128 million pounds from a group of investors, which included Yahoo Japan Corp and Malaysia’s sovereign fund, Khazanah Nasional.

With CStrip’s acquisition of Skyscanner stated to be completed by the end of 2016, its current management will continue to operate independently, said CStrip.

The deal will consist mostly of cash, with Cstrip’s ordinary shares and loan notes, making up the rest.

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