Kayak Buys Rival SideStep for $200M

Travel aggregator raises funds from old and new sources
By Jason Farago,  Newser Staff
Posted Dec 21, 2007 9:43 AM CST

(Newser) – Discount travel search engine Kayak has acquired competitor SideStep for $200 million. Kayak raised nine figures in a new round of financing from its own investors, new VC companies, and SideStep's backers. It then bought SideStep for $180 million in cash plus a redistributed $20 million of SideStep's capital, reports TechCrunch.

Kayak, which aggregates results from multiple travel search engines, leads the market for discount travel searches, reportedly turning over $50 million in yearly revenue. Kayak's cofounder said in a statement he was grateful the Connecticut-based company was moving into Silicon Valley, adding, "As a native Bostonian, I am also personally gratified to finally see an East Coast technology firm purchase a West Coast counterpart."