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Kayak Software, a Travel Company Owned by Sequoia and Accel, Files for IPO

Kayak Software Corp., the Norwalk, Connecticut-based provider of online travel information, filed for an initial public offering worth as much as $50 million.

Banks led by Morgan Stanley and Deutsche Bank AG will underwrite the IPO, Kayak said in a filing with the Securities and Exchange Commission today. The company, which didn’t disclose a price range or the number of shares it will offer, plans to use the proceeds for general corporate purposes.

Kayak, backed by venture capital firms including Sequoia Capital and Accel Partners, filed to sell shares after MakeMyTrip Ltd., India’s largest online travel company, surged 89 percent following its U.S. IPO in August. Kayak, which lets shoppers looking for flights, hotels and vacation packages search multiple sites at the same time, had a 48 percent increase in sales in the first nine months of the year.

A total of 33 American companies backed by venture capital firms have completed initial sales this year, raising $3.64 billion, data compiled by Bloomberg show. Shares of venture backed-IPOs have risen 11 percent in the first day of trading on U.S. exchanges, more than twice the average for all other offerings, the data show. IPOs backed by private equity firms have posted an average gain of 1.1 percent.

Kayak’s sales rose to $128.3 million in the nine months through Sept. 30, from $86.6 million in the same period a year earlier, the company said in its filing. Net income fell 41 percent after marketing expenses, which include television and billboard advertising, almost doubled.

Sequoia Capital of Menlo Park, California, Accel Partners, the Palo Alto, California-based firm that also backs Facebook Inc., Cambridge, Massachusetts-based General Catalyst Partners, and Oak Investment Partners in Westport, Connecticut, own 69 percent of Kayak, according to its filing.

To contact the reporter on this story: Katie Hoffmann in New York at khoffmann4@bloomberg.net

To contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net; Daniel Hauck at dhauck1@bloomberg.net.

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