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Kayak Eyeing $150 Million IPO in Coming Weeks

Kayak Software is aiming to go public in the coming weeks, as the market for technology deals in particular could see a lift from Facebook's offering, according to people familiar with the deal.

Kayak first filed its IPO documents in November 2010, nearly a year and a half ago, but has held off on launching its deal due to choppy market conditions and erratic earnings.

Its most recent quarter showed a marked improvement. Last week, Kayak reported first-quarter net income of $4.1 million, compared to a $6.9 million loss a year earlier. Kayak's revenues for the quarter rose 39% for the same period, to $73.3 million.

The deal would aim to raise roughly $150 million for the travel website, according to one of these people, giving the website an implied valuation of more than $1 billion.

Kayak would be the first of the Facebook "follow-ons": Technology deals waved into the market by the giant social network - if its deal is well-received. A launch of the Kayak roadshow was discussed for the Monday immediately following Facebook's trading, but one of these people said that underwriters would liked to see Facebook trade above its issue price for an entire week. Due to that sentiment, the roadshow would likely launch just after Memorial Day.

Kayak's most recent filing still carries a boilerplate number of $50 million, a figure used to calculate registration fees. A Kayak spokesperson declined to comment on the deal.

Kayak's desire to go public is also fueled by increased competition posed by Google's purchase of Kayak partner and competitor, ITA. In its prospectus, Kayak lists the powerful platform now servicing ITA, which Kayak has a relationship with, as one of the major risk factors.

Google's flight search offering, according to the prospectus "includes significantly increased speed on return of search results."

The Google/ITA deal was announced three months before Kayak filed to go public.

- By CNBC's Kayla Tausche. Follow her on Twitter: @kaylatausche

email: tech@cnbc.com

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