Two major e-reservation companies are merging. The Priceline Group Inc. will acquire OpenTable for $103 a share. The transaction will be all cash, valued at $2.6 billion.
Darren Huston, president and CEO of Priceline, said "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."
OpenTable seats 15 million diners each month in 31,000 restaurants. Since they started in 2008, they have booked 125 million reservations. Priceline is much larger: there are an average one million guests each night staying in Priceline booked accommodations. Priceline works with almost half a million properties in 200 countries and territories.
Both boards of directors unanimously approved the acquisition. It is still subject to regulatory approval, and if all goes well, will close in late 2014.
OpenTable will continue operating independently out of their San Francisco headquarters.