Priceline to pay $2.6 billion for restaurant booking site OpenTable

By Travolution
By Travolution
June 13, 2014 03:12 PM GMT

Priceline, the parent company of Booking.com and Kayak, has announced it will buy restaurant reservations firm OpenTable for $2.6 billion.

The deal is expected to be completed in the third quarter of this year and underlines Priceline’s financial clout and growth strategy.

OpenTable is used by 15 million restaurant customers every month, many of whom use mobile devices to make bookings.

Business is largely focused on the US although the service is available in 18 countries globally.

Founded in San Francisco in 1998, OpenTable is forecast to see revenue growth of 19% this year to $226 million.

The cash bid for OpenTable was for $103 per share, a 47% premium on its closing value on the New York Stock Exchange where it is listed.

Priceline chief executive Darren Huston said: “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.”

Matt Roberts, chief executive of OpenTable, said: “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.”

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