Kayak.com to merge with SideStep

Online travel search engines Kayak.com and SideStep are to merge to create a global internet commerce giant.

The deal is to be completed after Kayak finalised a $196 million financing which has brought in new investors.

Both the SideStep.com and Kayak.com brands are to be maintained and will be developed and promoted independently, with key SideStep.com personnel joining Kayak.com’s team, a statement said.

The new financing and the SideStep.com merger will accelerate Kayak.com’s international expansion plans.

Kayak.com currently has websites in the UK, France, Germany and Spain, and will soon launch in Italy.

SideStep.com’s website in Ireland and its European affiliates will add to Kayak.com’s global business.

Kayak.com will also announce several affiliate deals in Europe in the coming months and is currently evaluating opportunities throughout Europe and Asia.

“This transaction combines the two biggest brands in travel search, which would make Kayak.com and its affiliate sites the fifth largest travel brand, with more monthly unique visitors than Priceline, every airline except Southwest, and every hotel and rental car brand,” the company said.

“Consumers will conduct more than 33 million searches on Kayak.com and its affiliates in January 2008, up from 16 million in January 2007.”

Kayak.com displays results from more than 400 travel sites, providing prices and itineraries for hundreds of airlines, more than 90,000 hotels, car hire companies and 18 cruise lines.

SideStep.com CEO Rob Solomon said: “From its inception as the first travel search engine, SideStep.com believed that consumers would prefer an objective and comprehensive travel shopping experience.

“Joining forces with Kayak.com will help make this vision a reality for mass market consumers.” “The commercial logic of this deal is obvious,” said Steve Hafner, Kayak.com CEO and co-founder.

“Kayak.com is a technology company focused on perfecting travel search, and SideStep.com is a media company with in-house sales expertise and user-generated content. By merging, each brand can improve its offering while continuing to focus on its individual strengths.

“With less than 10% overlap between existing Kayak.com and SideStep.com users, each site stands to gain millions of new users.”

“Kayak.com’s focus on customer service and rapid innovation has led to the best air and hotel search technology on the web,” said Paul English, CTO and co-founder of Kayak.com.

“Combined with SideStep.com’s travel guides and hotel reviews, both sites have a more complete offering for travellers than ever before.”

by Phil Davies