Summary
On May 18, 2010, priceline.com Incorporated (now Booking Holdings Inc.) announced a significant strategic acquisition through its subsidiary, Priceline.com International Limited. The company acquired a controlling majority stake in TravelJigsaw Holdings Limited, the parent company of a multinational car hire reservation service operating under the name TravelJigsaw. This acquisition expands priceline.com's offerings into the car rental market, a complementary segment to its existing online travel booking services. The company plans to retain TravelJigsaw's current management team, indicating confidence in their ability to continue operations and integration. The structure of the deal includes provisions for the retained minority ownership by TravelJigsaw's management, with put and call options exercisable over the next three years, suggesting a focus on incentivizing continued performance and ensuring a smooth transition and potential future consolidation.
Key Highlights
- 1Priceline.com Incorporated acquired a controlling majority stake in TravelJigsaw Holdings Limited.
- 2TravelJigsaw is a multinational car hire reservation service with a broad global presence (4,000+ locations in 80 countries).
- 3The acquisition represents an expansion into the car rental sector for priceline.com.
- 4Priceline.com intends to retain TravelJigsaw's current management team.
- 5Key members of TravelJigsaw's management retained a minority ownership interest.
- 6The deal includes put and call options on the retained interests, exercisable in 2011, 2012, and 2013, tied to fair market value.