A bomb just dropped in the online travel world: Priceline the world’s largest travel company, has agreed to acquire travel meta-search company Kayak, for about $1.8 billion. Priceline’s shares are down about 1.7 percent in extended trading, while Kayak’s up about 1.6 percent.Major deal points:– Priceline is offering $40 per share of Kayak, which is about 30 percent premium on today’s share value of around $30 a share. This values the company at about $1.8 billion, with about $500 million in cash and $1.3 billion in equity and assumed stock options.– Both boards have approved the deal, but shareholder approval required, expected to close by Q1, 2013.– Kayak to remain a separate brand, with same management.– As of November 8, 2012, Kayak’s directors and officers owned 70.4%, of its Class A and Class B common stock, which represents 77.9% voting power, which means shareholder resistance to the deal unlikely.
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