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11/08/2012 04:31 pm ET

Priceline Buys Kayak For $1.8 Billion

Priceline.com Inc., the most valuable online-travel agency, has agreed to buy Kayak Software Corp. (KYAK) for $1.8 billion in cash and stock to expand its Web-based travel services.

Kayak shareholders will receive $40 a share, the companies said in a statement. That price represents a 29 percent premium over Kayak’s closing price of $31.04 and includes about $500 million in cash as well as $1.3 billion in equity and assumed stock options.

Read more on www.bloomberg.com

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