Priceline to buy travel research site Kayak for $1.8 billion

Kayak will keep operating its search site for flights, hotels and rental cars independently, the companies said

Online hotel-booking giant Priceline.com plans to acquire Kayak, another Internet-based travel company, for US$1.8 billion in cash and stock, the companies announced on Thursday.

Priceline will pay about $500 million in cash and $1.3 billion in stock and stock options for Kayak. The deal has been approved by both companies' boards of directors but still needs approval by regulators and Kayak shareholders. It should close late in the first quarter of 2013.

Priceline says it offers online bookings at more than 270,000 hotels around the world. In addition to the Priceline.com site, it operates the Booking.com, Agoda.com and Rentalcars.com brands within its Priceline Group of companies. Kayak is a travel research site that consolidates information about flights, hotels and rental cars for comparison shopping. It links to multiple other sites, including Priceline's services, where users can complete a booking.

Kayak processes more than 100 million queries per month, according to a press release. Priceline said the acquisition would help Kayak to build a global brand. The Priceline Group operates in more than 180 countries, Priceline said. Priceline will pay $40 per share for Kayak, a significant premium on the company's closing stock price of $31.04 on Thursday. Kayak went public in July. However, Kayak's stock on the Nasdaq (KYAK) was down $0.50 in after-hours trading late Thursday. Priceline (PCLN) was down $6.74 at $627.87.

Kayak's current management team will remain in place and run the company independently within the Priceline Group, the companies said. Both companies are based in Norwalk, Connecticut.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

Join the Good Gear Guide newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags Priceline.come-commerceinternetKayak

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?