Booking Holdings to Acquire Getaroom for $1.2B

Online travel and related services provider Booking Holdings Inc. (BKNG) recently revealed that it has entered into an agreement to acquire Getaroom from Court Square Capital Partners for roughly $1.2 billion.

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Following the news, shares of the company declined 1.1% to close at $2,451.65 on Friday.

Implications of the Deal

Post the buyout, Getaroom will become a part of Booking Holdings’ Priceline brand and join Priceline Partner Network, the strategic partnerships team of Priceline.

This new strategic partnership will be beneficial for both hotel and affiliate partners. While for hotel partners there will be improved B2B distribution, the affiliate partners will gain access to a robust accommodations technology stack.

Management Commentary

The CEO of Priceline, Brett Keller, said, “By combining the technology and expertise of Getaroom and Priceline, we can further streamline distribution for our hotel partners and provide new and better solutions for the U.S. accommodations segment.”

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Price Target

Recently, Argus Research analyst John Staszak upgraded the stock to a Buy from Hold. The analyst’s price target of $3,060 implies upside potential of 24.8% from current levels.

The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 10 Buys and 9 Holds. The average Booking Holdings price target of $2,831.11 implies that the stock has upside potential of 15.5% from current levels. Shares have gained about 16.2% over the past year.

TipRanks Website Traffic

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Booking Holdings’ performance this quarter.

According to the tool, the website of Booking Holdings recorded a 19.04% monthly rise in global visits in October. Moreover, the website traffic has increased 13.62% year-to-date.