Internet Business Group plc is acquiring the non-flight interests of Cheapflights in a transaction that has been valued at over £1m.
The transaction sees the transfer of the www.cheapholidaydeals.co.uk, www.cheapaccommodation.com websites to IBG as well as a portfolio of domain names including Cheapshortbreaks.com.
Payment is being made in a combination of cash & shares. The two companies are to work closely to transition the operations over the course of the next two months.
David Soskin, CEO of Cheapflights, commented: “This transaction enables us to focus on our core flights price comparison business in the UK (www.cheapflights.co.uk); to continue the Company’s hyper-growth in the USA (www.cheapflights.com); and to devote resources to our planned international expansion. We are committed to ensure a smooth transition for the advertising partners on these excellent and successful sites.”
Maz Darvish, CEO of IBG, commented: “This transaction has significant strategic value for us. The reach of the acquired operations are highly complementary with Henoo.com as well as AffiliateFuture’s established position in the travel sector. We are committed to build on the excellent foundations of these sites, in order to continue delivering high quality traffic to clients. Also, I am delighted to welcome Cheapflights Ltd as a shareholder of IBG.”
Additionally, IBG is confirming that its non-executive director, Andrew Doe will be taking charge of its growing travel portfolio for a period of 3-months. Andrew brings with him a wealth of experience and a proven track record in building successful, large scale online operations.