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Online travel booking site Priceline is getting in the restaurant business. The company on Friday announced they will buy OpenTable for $2.6 billion in cash, agreeing to pay $103 per share - a 46 percent premium over yesterday's closing price according to a report from The Wall Street Journal.
Similar to hotel booking services, OpenTable's main draw is its inventory of more than 31,000 restaurant partners. Founded in 1998, the service offers real-time restaurant reservation services, seating more than 15 million diners each month around the globe.
The majority of their revenues last year - 80 percent - came from within the US while 80 percent of Priceline's revenues were earned overseas.
Priceline CEO Darren Huston said a lot of what the two companies do day to day is very similar and for them, the acquisition is a really natural extension. OpenTable chief Matt Roberts added that they are excited to join a group of brands leading in their space and look forward to the next chapter of their own journey.
Those leading brands that Roberts spoke of include Booking.com, Agoda.com, Rentalcars.com and Kayak. These companies still operate under their own branding although they are regulated and integrated into Priceline's business model.
Under the new ownership, OpenTable will continue to operate out of their current San Francisco offices. The deal is expected to close by the end of September pending customary regulatory approval.