Boston, MA 06/16/2014 (wallstreetpr) – Groupon Inc (NASDAQ:GRPN) witnessed a strong surge on June 13, powered by voluminous trade activity. GRPN had soared up from 6.01, rising by 3.91 till the day’s end, as an online travel company – Priceline Group Inc (NASDAQ:PCLN) acquired OpenTable Inc (NASDAQ:OPEN).
Groupon Inc (NASDAQ:GRPN) is a reliable eCommerce marketplace that notably connects a myriad of local merchants to consumers, and ensures that products and services are available at discounts. OPEN works on a similar premise – it provides discounted restaurant reservation opportunities to consumers.
A $2.6 Billion Takeover
Priceline Group Inc (NASDAQ:PCLN) struck a whopping $2.6 billion deal with OPEN at $103-per-share! Consequently, OPEN’s shares surged and steadied at $104.48, at the close of trade on June 13 – rising by 48.35%.
The CEO of PCLN, Darren Huston commented that this acquisition brings together two different online marketplaces with the verisimilitude of day-to-day activities. Further, he added that PCLN looks forward to accelerate OPEN’s prospective growth, increase its gamut of restaurant partners, thereby ameliorating the end-user experiences.
Henceforth, the customers that OpenTable Inc (NASDAQ:OPEN) procures across mobile devices or desktops will benefit collective interests of both OPEN and PCLN. The CEO of OPEN, Matt Roberts seemed excited at this acquisition, and was privileged to join the eCommerce leader – PCLN. He vouched for providing exquisite experiences to the collective customer base, in the days to come.
Why Does GRPN’s Takeover Look Probable?
This strategic acquisition has spurred intent amongst investors to increase purchase of GRPN’s shares, with greater vigor. In Q1-2014, OPEN witnessed a 18% rise in its net revenues, 23% surge in total expenses and obtained a consolidated loss of $0.16 per share.
In contrast, Groupon Inc (NASDAQ:GRPN) reported bagging $757.6 million revenues – the company’s second-best performance till date. Moreover, it bagged a surge in profits, YOY, by 2%, whereas, mobile transactions improved by 54%. The CEO of GRPN, Eric Lekofsky is confident of robust and unprecedented growth throughout FY 2014-15.
At this juncture, as top industry leaders have plans to build their arsenal, with substantial plans to ameliorate their online global market presence. Investors estimate that Tripadvisor Inc (NASDAQ:TRIP)’s acquisition of French online restaurant booking company, Lafourchette fuelled the OPEN takeover; hence, Groupon Inc (NASDAQ:GRPN) might just follow suit.