Priceline Group Inc. (PCLN), the largest US online travel agent, is buying OpenTable Inc. in a $2.6 billion deal. OpenTable is a company that helps restaurants manage and accept their reservations via mobile apps and online. Priceline is looking to add these restaurant reservations to their travel bookings online. The two companies stated that the deal is expected to go through in the third quarter.
Mark Mahanay, an analyst at RBC Capital Markets expressed that this will be a smart merger by stating, “We see this deal as likely part of Priceline’s move into offering a much broader range of local e-commerce services to what is a very attractive customer set.”
Priceline will be able to benefit tremendously from OpenTable’s mobile business. This acquisition will bring in over 15 million diners per month in over 31,000 restaurants. Priceline also has plans to expand beyond the US which will good exposure for OpenTable to get demand in new markets.
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