Priceline.com Acquires KAYAK For $1.8 Billion
Priceline.com has announced that they will be acquiring KAYAK in a stock and cash transaction worth $1.8 billion. This deal values KAYAK’s stock at $40 per share. Priceline.com will be paying $500 million of the consideration in cash and $1.3 billion in equity and assumed stock options.
The board of directors at KAYAK and Priceline.com has agreed on the terms. The deal is subject to closing conditions and is expected to close by Q1 2013.
The current management team at at KAYAK will continue their respective positions at the company independently after the transaction is complete under the Priceline Group of companies.
“Paul English and I started KAYAK eight years ago to create the best place to plan and book travel,” stated KAYAK CEO and co-founder Steve Hafner. “We’re excited to join the world’s premier online travel company. The Priceline Group’s global reach and expertise will accelerate our growth and help us further develop as a company.”
KAYAK is a travel research website that lets people compare hundreds of travel websites at once when looking for hotels, flights, and car rentals. KAYAK processes over 100 million user queries each month.
“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,” stated Priceline Group President and CEO Jeffery H. Boyd. “KAYAK also has world class technology and a tradition of innovation in building great user interfaces across multiple platforms and devices. We believe we can be helpful with KAYAK’s plans to build a global online travel brand.”