Priceline.com acquires OpenTable in $2.6 billion deal
It was announced recently that Priceline is acquiring OpenTable in a $2.6 billion deal. Priceline is a website that allows travelers to find deals for hotel reservations and other aspects of travel such as flights, car rentals, vacation packages, cruises and more.
OpenTable is an online service that allows users to complete restaurant reservations online. By acquiring this company, Priceline looks to expand its services into dining. According to Forbes, OpenTable will continue its operations as an independent company.
"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," Darren Huston, Priceline CEO said in a statement.
This move seems to make sense as part of the company's acquisition strategy. When people travel, they need access to accommodations, transportation and other services as part of their trip. Dining is also a big part of travel, so Priceline could be expanding its services to include this feature with the addition of OpenTable.
By offering the additional dining reservations service, Priceline might be able to set itself apart from competitors by offering something that other similar services do not.
Last year, Priceline acquired Kayak, a travel search website, in a $1.8 billion deal. This deal allowed Priceline to expand its mobile offerings, helping them to access customers that were using mobile to search for travel information. Additional acquisitions by the company include TravelJigsaw, Booking.com and Agoda.com.
Acquisitions allow companies to expand their portfolio offerings and increase value for shareholders. With the acquisition of OpenTable, Priceline looks to continue this trend. Companies interested in planning an acquisition strategy can consult an M&A advisor to determine a plan for success.