Mobile-based budget accommodation agency WeHostels has ended less than two years as a startup and will be joining StudentUniverse for an undisclosed fee.
The deal is said to be for cash and shares and comes 18 months after the company rebranded from its original Inbed.me to WeHostels.
CEO Diego Saez-Gil says the company will continue to operate its standalone brand but will also leading StudentUniverse's mobile strategy going forward.
StudentUniverse currently has an iPhone application in the marketplace and has attracted $20 million in private funding to fuel its growth of building a company with headquarters in Boston, US, and offices in the UK, Philippines and Portugal.
Inbed.me had raised some $1.2 million within a few months of launching (TLabs here) from a large group of investors around the world including Ventech (Paris), Quotidian Ventures (US) and CAP Ventures (Argentina).
StudentUniverse CEO, Atle Skalleberg, says:
"We have been impressed with their agility and track record of innovation. The team will help drive our mobile strategy going forward. The new combined group of talented people will help accelerate the momentum and innovation of both our accommodation and mobile services."
The acquisition follows a major piece of consolidation in the hostel and budget accommodation sector in April this year when HostelWorldbought arch rivalHostelBookers for an undisclosed fee.