Major Acquisition for Priceline.com

Internet Travel News: "Major Acquisition for Priceline.com

Priceline.com has acquired Bookings B.V. in a cash transaction valued at approximately €110 million, or US$133 million. The deal follows priceline.com’s recent acquisition of Cambridge-based Active Hotels in September 2004.

In total, Bookings B.V. and Active Hotels have negotiated exclusive rates with almost 18,000 properties, which the companies believe is more than any other European Internet hotel reservation service.

Bookings’ gross travel bookings for the 12 months ended June 30, 2005 are expected to be approximately US$225 million, up approximately 110% year-over-year. Bookings’ revenues for the 12 months ended June 30, 2005 are expected to be approximately US$25 million, up approximately 100% year over year. Gross bookings refer to the total dollar value, inclusive of taxes and fees, of all hotel room nights purchased by consumers, based on current foreign exchange rates. Priceline.com said that it expected the acquisition to be accretive to its earnings (before non-cash amortization expense associated with the acquisition) for the 2nd half of 2005 and for calendar year 2006."