The Priceline Group has signed a deal to acquire UK and Denmark-based travel search site Momondo Group for $550 million in cash. Momondo offers a metasearch engine for hotels, flights, and cars in Europe. Priceline bought Momondo from Great Hill Partners, a private equity firm that took a majority stake in the company for $130 million in 2014.
As a result of the deal, Momondo and its subsidiary brand, Cheapflights, will operate under Priceline's Kayak. Priceline acquired Kayak for $1.8 billion in 2012. The discussions regarding the acquisition of Momondo began in the Fall, as Kayak had been searching for a European partner.
Kayak co-founder and CEO Steve Hafner told the travel news site Skift that the acquisition of Momondo will help Kayak in the UK, the Nordics and Russia, as Kayak hasn't invested heavily in these markets, but Momondo and Cheapflights have a strong presence there.
Read more: Skift