acquired Bangkok- and Singapore-based Agoda Company in a
transaction that includes an initial cash payment and a multi-year,
performance-based earn-out. Priceline.com said it intends to retain
Agoda’s current management team, who will continue to manage Agoda’s
operations independently as part of priceline.com’s international
In the Asia Pacific region, Agoda offers hotel properties in
Australia, China, Japan, India, Thailand, South Korea, Singapore,
Indonesia, the Philippines, New Zealand and several other countries.
In addition, Agoda offers hotels in Europe, the Americas, the Middle
East and Africa. Agoda’s services are offered in 12 languages. In
addition to its transactional offerings, Agoda maintains a broad suite
of content features, including customer hotel reviews, travel tips,
journals and other user-generated content.
“We believe that Agoda, while relatively small today, will be an
important part of priceline.com’s expansion into Asia,” said
priceline.com President and Chief Executive Officer Jeffery H. Boyd.
“With priceline.com’s expertise, worldwide hotel inventories and
customer demand, we see an opportunity to leverage Agoda and offer the
most complete and compelling inventory and content to customers
traveling in Asia.”
“Online travel is still a relatively nascent industry in many
Asian countries,” said Glenn Fogel, priceline.com’s Managing Director,
Corporate Development and International. “However, we believe the time
is right for priceline.com to begin growing our presence in the Asia
Pacific region, and Agoda gives us the ability to do so with a team of
skilled professionals on the ground in this important region.”
“Agoda’s mission is to make booking hotels in Asia easy and
affordable for customers around the globe,” said Agoda’s Chief
Executive Officer Michael Kenny. “We are very excited to be part of
the priceline.com team that shares our same commitment to customers.
We believe that the emerging markets of Asia, where Agoda is based,
are particularly promising as Internet usage, credit card adoption and
domestic economies continue to grow.”
Agoda’s gross bookings for 2007 year to date through October 31,
2007 were approximately US$36 million, an increase of 122% over a year
ago. Gross bookings refer to the total dollar value inclusive of taxes
and fees of all hotel room nights purchased by consumers.
Priceline.com said that it expected the acquisition to be neutral to
slightly accretive to its pro forma earnings (before non-cash
amortization expense associated with the acquisition) for calendar
year 2008. A description of priceline.com’s pro forma earnings is
included in priceline.com’s 3rd quarter 2007 earnings announcement
issued concurrent with this release.
Agoda is priceline.com’s third international acquisition. In 2004,
priceline.com acquired Cambridge-based online hotel reservation
service Active Hotels and, in 2005, acquired Amsterdam-based hotel
service Bookings B.V. The two services have since been merged into a
single, new online hotel reservation service, Booking.com.
Priceline.com believes that Booking.com is Europe’s largest and
fastest growing online hotel reservation service, operating in over 60
countries in 16 languages, with access to approximately 38,000
participating hotels worldwide.