Priceline.com Inc. (PCLN) has agreed to acquire Kayak Software Corp. (KYAK) for $1.8 billion or $40 per share in a stock and cash transaction.
Priceline said it will pay about $500 million in cash and $1.3 billion in equity and assumed stock options.
The boards of both companies have approved the acquisition, and now it requires Kayak's shareholders and regulatory approvals. The company expects to close the deal by the first quarter of 2013.
Priceline said it expects that the impact of the Kayak acquisition on adjusted earnings in 2013 to be "de minimis."
Kayak has built a strong brand in online travel research and their track record of profitable growth is demonstrative of their popularity with consumers and value to advertisers," said Priceline Chief Executive Group Jeffery Boyd.
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