NORWALK, CT: Kayak Software is working with ICR on investor relations for its acquisition by Priceline.com.
Priceline said Thursday it plans to buy Kayak for $1.8 billion in cash and stock. The deal comes less than four months after Kayak's initial public offering, and it is expected to close by the first quarter of 2013.
Text 100, Kayak's PR AOR since December 2010, is handling PR for the company and helped draft the press release about the deal. VP Tara O'Donnell and account director Jessica Casano-Antonellis are leading the account from New York.
Text 100 also assisted with PR for the IPO and the company's subsequent earnings, said agency representatives Kayak has worked with ICR as IR AOR since 2011.
The Kayak acquisition would be Priceline's largest transaction to date and could provide the company with a new revenue source in online advertising. Priceline makes money from fees and commissions on reservations, while Kayak earns much of its revenue from advertising and referrals to online travel agencies such as Priceline and rival Expedia.
The deal would also give Priceline a bigger share of the mobile market. Kayak and Priceline both have travel apps for Apple and Android devices.
Kayak's third-quarter revenue rose 29% to $78.6 million, compared with the prior year, the company said Thursday. Its net income in the period rose 14% to $8 million. Following the acquisition announcement, Kayak shares jumped 27% in after-hours trading, while Priceline shares fell 1.9%.
Kayak raised $91 million through its IPO, and its shares rose from $26 to $33 on the first day of trading in July.