On 13th June 2014, Priceline Group Inc. announced the acquisition of leading restaurant search and table booking company – OpenTable – for $103 per share in a transaction valued at $2.6 Bn. The Priceline Group is a world leader in online travel, serving consumers and partners via brands such as Priceline.com, KAYAK, Booking.com, rentalcars.com, and Agoda.com.
"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," stated President & CEO of The Priceline Group, Darren Huston, in a press release. "We look forward to helping theOpenTable team accelerate their global expansion, increase the value offered to their restaurant partners, and enhance the end-to-end experience for our collective customers across desktop and mobile devices,” he added.
- Over 15 Mn diners are seated every month across more than 31,000 restaurants via OpenTable.
- This makes it the world's leading provider of online restaurant reservations.
- OpenTable has seated over 125 Mn diners worldwide via its mobile solutions.
- The company says that its brand is built on helping diners discover and book the perfect table as well as helping restaurants connect directly with their customers.
- The Priceline Group states that every night, an average of over 1 Mn guests stay in accommodations booked via one of its brands.
- This spans more than 480,000 properties in around 200 countries and territories worldwide.
- The Boards of Directors of The Priceline Group and OpenTable have unanimously approved the transaction, according to the release.
- This will be effected via a tender offer and is expected to close in the Q3 this year.
- The tender is subject to the satisfaction of customary closing conditions, including the receipt of regulatory clearance.
- OpenTable will operate as an independent business led by its current management team within The Priceline Group.
- The company is to continue to be headquartered in San Francisco, CA.
"The Priceline Group is a leader in e-commerce innovation with global expertise in online marketing and digital customer conversion across devices, and they have an exceptional track record of customer service in dozens of languages around the world," commented the CEO of OpenTable, Matt Roberts, in the same release. "We couldn't be more excited to join a group of brands leading in their space, and we look forward to the next chapter of our own journey as we continue to enhance the dining experience for our customers worldwide."
OpenTable, Some History:
OpenTable was founded in July 1998 and is based in San Francisco, USA. The company had received a total funding of $48 Mn through investors Draper Richards, Venture Frogs, Benchmark, Impact Venture Partners, American Express, Zagat, Comdisco Ventures, Integral Capital Partners, Upstart Capital and France Telecom..
OpenTable made a series of acquisitions in past years to integrate the entire consumer experience steps onto a single platform. In February 2014, the company announced that it had acquired Ness – makers of the personalized restaurant recommendations app Ness. The deal was valued at $17.3 Million according to the company.
OpenTable has made total acquisitions worth $108 Mn since 2009. The company acquired – Quickcue in 2013 for $11.5 Mn, JustChalo in 2013 for 11Mn, Foodspotting in 2013 for $10Mn, Treatful in 2010, Toptable for a whopping $55 Mn in 2010 and GuestBridge for $3 Mn in 2009.
Recently, OpenTable launched a mobile payment platform in Washington D.C., USA. The new reservation system communicates with the QSR’s point-of-service system. The restaurant’s servers can also be alerted regarding the status of payment. OpenTable currently charges 75 cents for each transaction.