OpenTable Acquired by Priceline for $2.6 Billion

Priceline’s purchase of OpenTable is not one filled with sudden surprise. The company has been in talks with the restaurant booking service over the past few years. OpenTable has dominated the industry for such a service, and Priceline shows excitement at expanding their traveling conglomerate to encompass bookings for breakfast, lunch and dinner. OpenTable participates with over 30,000 restaurants and works closely with around 15 million consumers booking reservations. The price tag of $2.6 billion to purchase OpenTable was a pricey one for Priceline.

Last year, Priceline acquired Kayak, the online aggregator of travel. The purchase of $1.8 billion was considered the highest for Priceline until OpenTable.

Opening the path of restaurant booking will be international, Priceline executives previously hinted. The mobile touch of booking a place to eat will be heavily promoted, using Priceline’s distinct online presence. Many considered the revenue of Priceline was slowing, and they needed to make an expansion quick.

It appears that is not case, considering the company raked in $6.8 billion in 2013, and looks forward to expanding divisions from their impressive online presence. Priceline executives see OpenTable as a way to grow their market, by attracting a one-stop-shop, in more ways than one.

Priceline advised the division will run independently, and its headquarters will remain in San Francisco. The company advised the current management team will remain in place as well.

Changes coming to OpenTable may include cloud-based systems to communicate with restaurants. This would vary from the hardware previously installed by the restaurants. Additionally, while OpenTable is available in London, Hong Kong and Berlin - Priceline wants to use their global reach to expand OpenTable just as widely.

Priceline is paying $103 per share, and is expecting to drive OpenTable beyond the rising competition. Previously, OpenTable discussed a service which allows consumers to connect their mobile devices to the system to track, and pay their bills, all without passing cards and cash to a waiter. The service is expected to be further reviewed by Priceline executives.

After years of discussion and a final payment of $2.6 billion, the two boards unanimously approved the deal. Prior to the finalization of the deal Priceline changed their corporate name to Priceline Group, Inc. from Priceline.com, to show their encompassing favor of opening divisions outside of travel needs.

by reader: Denise Hardy