Priceline is acquiring OpenTable for $US2.6 billion.
Priceline offered $US103 per share for OpenTable. OpenTable closed at $US70.43 yesterday, making it a 46% premium.
Priceline does hotel and flight reservations. OpenTable does restaurant reservations. So, there are some similarities between the companies.
The CEO of Priceline, Darren Huston, tells the Wall Street Journal, “The kind of work that we do day-to-day is very similar. It’s just a different marketplace.”
The snap reaction to the deal is that Priceline is buying growth with OpenTable.
Here’s the official press release on the deal:
NORWALK, Conn. and SAN FRANCISCO, June 13, 2014 /PRNewswire/ — The Priceline Group Inc. (PCLN) and OpenTable, Inc. (OPEN) today announced that they have entered into a definitive agreement whereby The Priceline Group will acquire OpenTable for $US103 per share in an all cash transaction valued at $US2.6 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.”
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.
The Priceline Group is the world’s leading accommodation booking platform. Every night, an average of more than 1 million guests stay in accommodations booked through one of The Priceline Group brands in over 480,000 properties in over 200 countries and territories worldwide.
“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.”
The Boards of Directors of The Priceline Group and OpenTable have unanimously approved the transaction, which will be effected through a tender offer and is expected to close in the 3rdquarter of 2014, subject to the satisfaction of customary closing conditions, including the receipt of regulatory clearance.
OpenTable will continue to be headquartered in San Francisco, CA and will operate as an independent business led by its current management team within The Priceline Group.