Summary
Priceline.com Incorporated (now Booking Holdings Inc.) announced on November 7, 2007, the completion of its acquisition of Agoda Company, Ltd. and AGIP LLC (collectively, the "Agoda Companies"). This strategic move signals a significant expansion into the Asian travel market, a key growth region. The acquisition was finalized on November 6, 2007. The total consideration for the acquisition includes an initial cash payment of approximately $15.1 million, subject to working capital adjustments and an escrow for indemnification. Additionally, up to $141.6 million in cash is contingent on the Agoda Companies achieving specific gross bookings and earnings targets between January 1, 2008, and December 31, 2010. This earnout structure aligns incentives for future performance and growth in the acquired entities.
Key Highlights
- 1Priceline.com Incorporated acquired Agoda Company, Ltd. and AGIP LLC on November 6, 2007.
- 2The acquisition marks a significant strategic entry and expansion into the Asian travel market.
- 3The total purchase price includes an initial cash payment of $15,074,693, subject to adjustments and escrow.
- 4A substantial earnout of up to $141,600,000 is payable if Agoda Companies meet gross bookings and earnings targets from 2008-2010.
- 5The payment of the earnout is scheduled for April 2, 2011, with potential extensions under specific market disruption scenarios.
- 6The acquisition was announced via a press release on November 8, 2007.