Looking to expand its footprint in the online travel business, Bellevue-based Concur today announced that it has acquired Hipmunk, a 6-year-old San Francisco company that helps travelers more easily discover hotels, flights and car rentals. Terms of the deal were not disclosed, though Concur said in a press release that it expects the transaction to close next month.
Hipmunk raised close to $60 million in venture funding, according to Crunchbase, and its backers include large venture capital investors such as Oak Investment Partners, IVP and Bellevue-based Ignition. Angel investors include Seattle area entrepreneurs such as RealNetworks founder Rob Glaser and Zillow co-founder Rich Barton, as well as actor Ashton Kutcher, early Google developer and Gmail creator Paul Buchheit and others.
The acquisition marks the latest for Concur in the online travel space, which established a $150 million venture fund four years ago under the “Perfect Trip” moniker to make inroads in the online travel arena. It purchased business travel upstart TripIt in 2011.
Hipmunk was started by computer scientists Steve Huffman, who previously co-founded Reddit, and Adam Goldstein, who previously co-founded BookTour. It faces still competition from the likes of much larger rivals such as Expedia and Kayak.
Skift first reported on the news of the acquisition, noting that Hipmunk’s 55 employees will remain in San Francisco after the acquisition.
Here’s the full press release:
Bellevue, Wash., September 13, 2016 – Concur, an SAP (NYSE: SAP) company and the world’s leading provider of integrated travel and expense management solutions, today announced that it has signed a definitive agreement to acquire Hipmunk, a leader in travel search innovation. The Hipmunk team and their innovations will further Concur’s strategy to deliver consumer-grade products to corporate customers. The transaction is expected to close in October 2016.
As evident in Concur’s acquisition of TripIt, development of ExpenseIt and investment in ClearTrip, Concur has a long-held strategy of partnering with, investing in, acquiring or building consumer apps. These investments yield learnings and capabilities that enable Concur to ultimately deliver consumer-grade products to corporate customers.
“We are excited to welcome Hipmunk, the innovation leader in travel search, to the Concur and SAP family,” said Elena Donio, President of Concur. “Concur has always strived to provide the best experience for travelers on our platform and we’re confident Hipmunk will continue to delight consumers while informing the innovation agenda for our corporate clients.”
Hipmunk is known for delivering some of the most innovative functionality in the travel industry, particularly features and functionality that are highly relevant to and beloved by frequent travelers. The company was the first to create a website and mobile app that sorts travel results not just by price, but also key factors that are important to business travelers such as duration, stops and hotel location. Additionally, its calendar integration and hotel map search allow business travelers to easily see the best hotel and flight options based on meeting time and location. Lastly, Hipmunk is a leader in the cutting edge space of artificial intelligence-powered travel search and travel bots.
“Six years ago, our vision was to take the agony out of travel and travel planning,” said Adam Goldstein, co-founder and CEO of Hipmunk. “This combination means we can do an even better job for frequent travelers, in both their leisure and business travel.”
“This deal brings together two travel technology companies known for their commitments to innovation and creativity. The travel landscape continues to evolve with the pace of technology, a new generation of travelers, and a fluctuating global economy – factors that have a profound impact on how consumer and business travelers behave,” said Henry Harteveldt, Founder of Atmosphere Research. “This acquisition positions Concur and Hipmunk well to remain both market leaders and disruptors, furthermore, helping them stay ahead of the trend for a more personalized experience in both leisure and business travel.”
Concur, an SAP company, imagines the way the world should work, offering cloud-based services that make it simple to manage travel and expenses. By connecting data, applications and people, Concur delivers an effortless experience and total transparency into spending wherever and whenever it happens. Concur services adapt to individual employee preferences and scale to meet the needs of companies from small to large, so they can focus on what matters most for their businesses. Learn more at www.concur.com or the Concur blog.
Hipmunk is the fastest, easiest way to plan travel. The site and mobile apps help save time and money by comparing top travel sites to show the perfect flight or hotel at the lowest price. Hipmunk offers the most comprehensive travel search, from commercial flights, trains, and charter flights to hotels and vacation rentals through Airbnb. The unique display makes it easy to visually compare results to choose the best option. Try Hipmunks’ new A.I.-powered personal travel assistant, Hello Hipmunk, to get instant planning and booking recommendations by sending an email to email@example.com or visiting www.hipmunk.com/hello.