Priceline.com just announced that it has agreed to acquire the travel search engine Kayak for $1.8 billion. Priceline will pay $40 per share for Kayak. About $500 million of the purchase price will be in cash and the other $1.3 billion in equity and stock options.
Priceline said that Kayak will continue to operate independently. Kayak, Priceline argued, will profit from this partnership in its plans to expand internationally. Priceline also noted that this transaction will help Kayak to get deeper into the hotel business.
Priceline has acquired four companies so far: Agoda.com, Booking.com, TravelJigsaw and Active Hotels.