Overstock.com to expand online travel business with acquisition of Ski West
Liquidator Overstock.com is acquiring Ski West Inc., a Park City, Utah-based online travel company that has developed proprietary technology which provides users with easy access to a fragmented, difficult to find inventory of travel bargains. The cash deal is valued at $25 million, plus an earn out for future performance.
The acquisition enables Overstock to offer its customers travel deals online consistent with its core shopping business, according to the company. “Thus we continue our strategy of making Overstock.com the one-stop shop for discounts on everything for which people shop online,” says CEO Patrick Byrne of the acquisition.
The deal is expected to close in July. Ski West will for now operate as a subsidiary of Overstock.com, which has said it intends to retain Ski West’s employees.
Overstock.com initially launched its travel business in 2003 to offer online shoppers discounted rates on unsold hotel rooms, airline seats and rental cars. The travel store features bargains that Overstock says are not available on other travel sites, including domestic and international hotel accommodations. Overstock’s travel partners have developed exclusive relationships with brand name travel companies that allow unsold travel inventory to be offered in Overstock’s travel store, the company says.
Ski West’s travel offerings are primarily in popular ski areas in the U.S. and Canada, and include recent expansion into the Caribbean and Mexico, in addition to cruises.
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