Online travel agent Priceline.com will acquire booking comparison site KAYAK Software Corp in a deal worth US$1.8 billion, or $40 per share, the companies announced Thursday.
Under the agreement, which will see Priceline pay its younger rival $500 million in cash and $1.3 billion in stock, KAYAK will continue to operate independently under the Priceline umbrella.
Subject to a vote by KAYAK shareholders and regulatory approvals, the deal is expected to close by late first quarter 2013.
Priceline Group president and chief executive Jeffery H. Boyd said he believed the company could “be helpful with KAYAK’s plans to build a global online travel brand”.
“KAYAK has built a strong brand in online travel research and their track record of profitable growth is demonstrative of their popularity with consumers and value to advertisers,” he remarked.
“KAYAK also has world class technology and a tradition of innovation in building great user interfaces across multiple platforms and devices.”
KAYAK chief executive and co-founder Steve Hafner said Priceline’s “global reach and expertise will accelerate our growth and help us further develop as a company”.
"We’re excited to join the world’s premier online travel company,” he stated.
Processing over 100 million user queries each month through its websites and app, KAYAK was listed as a public company less than four months ago.
Source = e-Travel Blackboard: M.H