Summary
Priceline.com Incorporated (now Booking Holdings Inc.) announced on September 21, 2004, the completion of its acquisition of approximately 98% of Active Hotels Limited, a prominent European online hotel reservation provider. The transaction involved a cash payment of £90 million (approximately $161 million), with an additional contractual right to acquire the remaining 2% of Active Hotels' shares. This strategic acquisition significantly expands Priceline's presence in the European online travel market, aligning with its growth strategy in international markets. As part of the deal, Priceline also entered into arrangements with 13 key officers of Active Hotels, involving the purchase and grant of Class B voting common shares representing a small percentage of Active Hotels' capital. These arrangements include vesting schedules and put/call options, designed to incentivize and retain key management. The filing also notes a separate press release issued the same day concerning revised earnings guidance, which investors should review for potential impacts on the company's financial outlook.
Key Highlights
- 1Priceline.com Incorporated acquired approximately 98% of Active Hotels Limited for £90 million (approx. $161 million) in cash.
- 2The acquisition significantly expands Priceline's footprint in the European online hotel reservation market.
- 3Priceline has a contractual right to acquire the remaining 2% of Active Hotels' shares.
- 4Arrangements were made with 13 key Active Hotels officers, including the purchase and grant of Class B voting shares.
- 5The Class B share arrangements include vesting schedules and put/call options tied to fair market value.
- 6A second press release on the same day provided updated earnings guidance for Priceline.com.
- 7Financial statements for the acquired business and pro forma financial information are to be filed by amendment.