updated 06:10 pm EST, Thu November 8, 2012
Kayak's earnings up 29 percent before acquisition
Travel website Priceline has purchased Kayak.com for $40 per share, it was announced today. The deal amounts to about $1.8 billion, with the Priceline Group paying about $500 million of that in cash and the rest coming in equity and assumed stock options. The deal is expected to close during the first quarter of 2013.
The acquisition came on the same day Kayak announced its results for the third quarter of 2012. That announcement included news of $78.6 million in revenues, up 29 percent year-over-year, and a net income of $8 million, up 14 percent year-over-year.
Speaking on the deal, Priceline CEO Jeffery Boyd said he believes Priceline can "be helpful with Kayak's plans to build a global online travel brand."
Kayak currently processes over 100 million user queries each month through its global websites and mobile applications. Priceline partners with more than 270,000 hotels worldwide to help users identify the best deals on lodging.