How The Skyscanner Deal Will Affect Trivago's Upcoming IPO
Skift Take
Ctrip’s acquisition of Skyscanner marks the next phase of consolidation in the metasearch industry. The premium valuation paid by Ctrip is well-timed for Expedia’s pending Trivago IPO.
Ctrip’s acquisition of Skyscanner for £1.4 billion amounts to approximately 9x forward revenue assuming revenue grows at close to 29 percent in 2016 as it did in 2015. The valuation is a premium to past metasearch deals. Kayak was sold to Priceline for roughly 7x 2012 revenue back in 2012. At the time, Kayak had an EBITDA margin of close to 23 percent versus Skyscanner at 15 percent in 2015. Revenue growth was comparable with Kayak at 30 percent and Skyscanner at 29 percent.
Given the scarcity of quality metasearch companies with global scale, Skyscanner’s strength in air, and Ctrip’s desire to push more outbound travel, the acquisitio
