Priceline Group Inc (PCLN
) agreed to acquire OpenTable Inc. (OPEN
) for $2.6 billion in cash.
The online travel group offered $103 a share, 46% premium from to OpenTable’s closing price.
More than 15 million diners use OpenTable every month at 31,000 restaurants across the nation according to the company’s web site and increasingly reservations are done using mobile devices.
OpenTable Inc soared 47% to $103.52 and Priceline Group declined 0.8% to 1,216.63.
Other internet stocks also advanced after the deal and the recently listed GrubHub advanced 5.6% or $1.90 to $35.55.
OpenTable listed its stock in May 2009 and the company headquarter is located in San Francisco. The online reservation company is expected to generate $226 million in revenues this year.
OpenTable’s revenues in 2013 increased to $190 million from $160 million in 2012 and earnings rose to $33.38 million from $24 million in the period. Earnings per share jumped to $1.39 in 2013 from $1.03 in 2012.