Travel

#Expedia Inc acquires Travelocity in $280 million deal

Expedia Inc acquires Travelocity in $280 million deal

Fri, Jan 23 15:34 PM EST

By Jeffrey Dastin

(Reuters) - Expedia Inc (EXPE.O ) has acquired online travel agency Travelocity from technology company Sabre Corp (SABR.O ) for $280 million in cash, the companies said in a statement on Friday, as consolidation in the online booking industry continues.

The deal follows a 2013 marketing agreement in which Expedia Inc's technology powered platforms for Travelocity's U.S. and Canadian websites, while Travelocity drove additional web traffic to Expedia.

The merger marks further consolidation in the online booking space, which has seen a number of acquisitions from Expedia Inc's main competitor, The Priceline Group (PCLN.O ), including its $2.6 billion takeover of restaurant reservation website OpenTable last year.

"Given the success that they've had with integrating Travelocity into Brand Expedia (through the 2013 agreement), it's a positive outcome," said S Editing by Alan Crosby)