Priceline Buys OpenTable for $2.6 Billion in CashBy: Josh Wolford - June 13, 2014
One booking and accommodations company has agreed to acquire another, as travel and hotel site Priceline is buying restaurant reservation purveyors OpenTable. The acquisition is for $103 per share, an all-cash purchase valued at $2.6 billion.
“OpenTable is a great match for The Priceline Group. They provide us with a natural extension into restaurant marketing services and a wonderful and highly-valued booking experience for our global customers,” said Darren Huston, President & CEO of The Priceline Group. “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.”
Priceline.com went live on the web in 1998, promising discounts for travelers on both flights and hotel stays. The Priceline Group acquired Kayak back in 2012. OpenTable was also founded in 1998, but didn’t hit mobile until 2008. The company now manages reservations for over 31,000 restaurants.
“The Priceline Group is a leader in e-commerce innovation with global expertise in online marketing and digital customer conversion across devices, and they have an exceptional track record of customer service in dozens of languages around the world,” said Matt Roberts, CEO of OpenTable. “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.”
OpenTable says that it is currently “seating” 15 million diners a month. The deal with reportedly close in September.
Image via OpenTable, Facebook