Priceline.com Inc., the most valuable online-travel agency, has agreed to buy Kayak Software Corp. for US$1.8-billion in cash and stock to expand its Web-based travel services.
Kayak shareholders will receive US$40 a share, the companies said in a statement. That price represents a 29% premiumover Kayak’s closing price of US$31.04 in New York today, and it includes about US$500-million in cash as well as US$1.3-billion in equity and assumed stock options.
Priceline has been using acquisitions to add customers as it works to grow sales and fend off competition in a sluggish economy. Kayak, which raised US$91-million in an initial public offering in July, lets travelers compareprices and make reservations for hotels, flights, cars and vacations.
