China

Qunar $QUNR to Reportedly Acquire 517NA

This article was originally published on July 30, 2014 at 11:08 pm EST

Summary:

  • Chinese online travel agent Qunar (US: QUNR) will reportedly acquire smaller player 517NA, as reported by Sina.
  • The deal will reportedly be announced in the near future. So far Qunar has declined to comment.

Why It Matters:

  • 517NA was founded in 2007 and focuses on the business-to-business (B2B) air-tickets business. The article suggests that 517NA talked to several companies and Qunar offered the highest price. Although detailed price information is not available, Sina suggests that the acquisition price could amount to hundreds of million RMB.
  • Qunar is China’s second largest online travel agent. Baidu.com (BIDU) is Qunar’s largest shareholder and is providing strong support to the company, including internet traffic. As a result Qunar has experienced fast growth in the past year and is threatening Ctrip.com’s (CTRP) leading position.