Priceline will pay $103 per share in cash through tender offer, which will be a handsome 46 percent premium on OpenTable's closing share price Thursday. The purchase will see the travel service enter the restaurant reservation industry, where OpenTable claims to seat 15 million diners every month in 31,000 restaurants across the country.
"OpenTable is a great match for The Priceline Group. They provide us with a natural extension into restaurant marketing services and a wonderful and highly-valued booking experience for our global customers," said Priceline Chief Executive Darren Huston.
Priceline in the past has added other online booking brands like Kayak and Booking.com to its portfolio, but both were travel-related sites. This marks its first foray into restaurant reservations.
OpenTable is expected to remain at its San Francisco headquarters and will function as an independent business led by the current management.
"We couldn't be more excited to join a group of brands leading in their space, and we look forward to the next chapter of our own journey as we continue to enhance the dining experience for our customers worldwide," said OpenTable CEO Matt Roberts.
Priceline brands place an average of one million guests in hotels and accommodations each night, at more than 480,000 properties in more than 200 countries and territories.