In a deal that totals $1.8 billion in cash and stocks, Priceline has agreed to buy fellow comparison site KAYAK. This puts the shares of the publicly traded company at $40, up from where it closed today at $31.
KAYAK consolidates the pricing from several different online booking services including Priceline. It appears that KAYAK will stay operational but it's doubtful that it will continue to offer comparison shopping the way it does today.
"Paul English and I started KAYAK eight years ago to create the best place to plan and book travel," said Steve Hafner, KAYAK Chief Executive Officer and Cofounder. "We're excited to join the world's premier online travel company. The Priceline Group's global reach and expertise will accelerate our growth and help us further develop as a company."
