Priceline Group Inc (NASDAQ:PCLN) signed a definitive agreement to acquire OpenTable Inc (NASDAQ:OPEN) an online restaurant booking company for $2.6 billion or $103 per share in an all cash transaction.
The acquisition price is almost 50% premium to the closing price of OpenTable Inc (NASDAQ:OPEN) at $70.43 per share on Thursday. The stock closed $104.48 per share, an increase of more than 48% on Friday.
Darren Huston, president and CEO of Priceline Group Inc (NASDAQ:PCLN) said the online restaurant booking company is a great match and provides a natural extension to the travel site owner’s restaurant marketing services. Huston added that OpenTable Inc (NASDAQ:OPEN) will also provide “wonderful and highly-valued experience of Priceline’s customers worldwide.
“We look forward to helping the OpenTable team accelerate their global expansion, increase the value offered to their restaurant partners, and enhance the end-to-end experience for our collective customers across desktop and mobile devices,” said Huston.
On the other hand, Matt Roberts, CEO of OpenTable Inc (NASDAQ:OPEN) described Priceline Group Inc (NASDAQ:PCLN) is a “leades in e-commerce innovation with global expertise in online marketing and digital customer conversion across devices.” He also noted that travel site owner has an exceptional track record of customers services in different languages worldwide.
With more than 15 million diners seated per month across more than 31,000 restaurants, OpenTable is the world’s leading provider of online restaurant reservations. OpenTable has seated more than 125 million diners worldwide through its mobile solutions, which were introduced in 2008. OpenTable’s brand is built on helping diners discover and book the perfect table and helping restaurants connect directly with their customers.
“We couldn’t be more excited to join a group of brands leading in their space, and we look forward to the next chapter of our own journey as we continue to enhance the dining experience for our customers worldwide,” said Roberts.
Priceline Group Inc (NASDAQ:PCLN) processes an average of more than 1 million booking accommodations for guests every night through its brands including agoda.com, booking.com, rentalcars.com, priceline.com and kayak over 480,000 properties in more 200 countries and territories around the world.
In a note to investors, Citi Investment Research Mark May commented, that Priceline Group Inc (NASDAQ:PCLN) could boost the business of OpenTable Inc (NASDAQ:OPEN) particularly in Europe, where it is a market leader due to significant online user traffic and organization infrastructure.
The board of directors of both companies unanimously approved the proposed deal, which is expected to be completed in the third quarter this year subject to customary closing conditions and regulatory approvals.
The shares of Priceline Group Inc (NASDAQ:PCLN) nearly 3% to $1,189.30 per share today.