Online travel company Priceline Group Inc. is getting into the restaurant reservation business.
Priceline said Friday it will pay $2.6 billion in cash to buy OpenTable, a San Francisco company that allows diners to make restaurant reservations over the Internet and through its mobile app.
The deal represents a 46% premium over OpenTable's closing price Thursday.
"OpenTable is a great match for The Priceline Group," said Darren Huston, Priceline's chief executive. "They provide us with a natural extension into restaurant marketing services and a wonderful and highly-valued booking experience for our global customers."
Priceline, which is based in
The acquisition will give Priceline access to OpenTable's client base of about 31,000 restaurants, which pay a fee to use OpenTable's dining reservation software. About 15 million diners a month use OpenTable.
Huston believes there's room for growth. "We look forward to helping the OpenTable team accelerate their global expansion," he said in a statement.
The deal is expected to close in the third quarter of this year.
Shares for Priceline were slightly down Friday, falling $20.92, or 1.71%, to $1,205.08 in midday trading.