Ctrip.com International (CTRP) - Get Report , a Chinese online travel company, saw shares jump 7% after it agreed to buy Skyscanner, a U.K. travel site, for £1.4 billion in cash ($1.7 billion) as it seeks to expand its global presence.
Ctrip Nasdaq-listed shares rose 7% to $43.85 in after-hours trading, paring the year-to-date loss to around 5.35%.
"This acquisition will strengthen long-term growth drivers for both companies," said James Jianzhang Liang, co-founder of Ctrip. "Skyscanner will complement our positioning at a global scale, and we will leverage our experience, technology and booking capabilities to help Skyscanner."
Edinburgh-based Skyscanner offers online information on flights, hotels, and rental cars, enabling site visitors to compare prices from hundreds of travel sites. Its site, available in over 30 languages, has 60 million monthly active users.
Founded in 1999, Shanghai-based Ctrip is also an online provider of accommodation reservation, packaged tours, and travel ticketing and is the largest of its kind in China in terms of transaction volume.
Ctrip's revenues have more than tripled since 2011, coming it at $1.7 billion in 2015. In the most recent quarter, revenue jumped 75%, backed by robust performance in the accommodation reservation and transportation ticketing businesses.
Since its foundation in in 2003, Skyscanner has received three rounds of investment from seven investors, according to Crunchbase, a database on start-ups. In January 2016, Skyscanner received $192 million from five investors, including Yahoo! Japan, Artemis, and Baillie Gifford, the database said.
The company had reportedly been seeking to either sell its business or implement an IPO.
"Ctrip is the clear market leader in China and a company we can learn a huge amount from," said Gareth Williams, co-founder and CEO of Skyscanner. "Ctrip and Skyscanner share a common view - that organizing travel has a long way to go to being solved. To do so requires powerful technology and a traveler-first approach."
Skyscanner will become a part of the Ctrip group but will be operated independently by the current management team.
The acquisition is expected to close by the end of 2016.