TripAdvisor to Acquire LaFourchette - Analyst Blog

By
A A A

TripAdvisor Inc. ( TRIP ), an online travel research company, has recently agreed to acquire LaFourchette. The financial terms of the deal have been kept confidential.

Paris-based LaFourchette is an online restaurant booking website featuring more than 12,000 restaurants in Europe. Additionally, the company offers management software solutions and application programming interfaces (APIs) for third-party developers to help restaurateurs increase their online business.

Upon the completion of the deal, LaFourchette and its employees will continue to operate from the company's offices in Paris and Barcelona.

The acquisition will complement TripAdvisor's existing restaurant offering by providing information about hotel bookings and related details such as discounts and booking details on mobile. This will improve efficiency, thereby expanding the company's user base, improving traffic, hotel shoppers and profits.

TripAdvisor has an aggressive merger and acquisition strategy. The company's most recent purchases include TripBod, a start-up which connects travelers with local experts, followed by Vacation Home Rentals for an undisclosed sum. Other takeovers in 2013 include GateGuru, a flight and airport information mobile app acquisition, following Oyster.com, TinyPost, JetSetter and CruiseWise.

TripAdvisor is the world's largest online travel research company. The acquisitions have helped the company to build a desired portfolio and increase page views per visitor since users now spend more time on its website. The company is striving to help consumers make their travel decisions easy and fruitful based on the experiences of other travelers.

TripAdvisor continues to witness robust top-line growth in every quarter. The company delivered a decent first quarter, with earnings exceeding the Zacks Consensus Estimate on the back of improved global travel market. Revenues were $281.0 million, up 22.2% year over year, driven by improvement in all its product lines and continued strong hotel shopper growth.

Over the long term, the company is well positioned for growth, given its expanding user base, improving margins and increasing monetization of social and mobile platforms.

Currently, TripAdvisor has a Zacks Rank #3 (Hold). Other stocks that have been performing well and are worth considering include WebMD Health Corp. ( WBMD ), Shutterfly, Inc. ( SFLY ) and Brightcove, Inc. ( BCOV ). While Brightcove sports a Zacks Rank #1 (Strong Buy), WebMD and Shutterfly carry a Zacks Rank #2 (Buy).


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BRIGHTCOVE (BCOV): Free Stock Analysis Report

SHUTTERFLY INC (SFLY): Free Stock Analysis Report

TRIPADVISOR INC (TRIP): Free Stock Analysis Report

WEBMD HEALTH CP (WBMD): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: BCOV , SFLY , TRIP , WBMD

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Cheap Ways to Sleep Better
Cheap Ways to Sleep Better          

Stocks

Referenced

Most Active by Volume

105,679,298
  • $16.13 ▼ 0.19%
43,130,824
  • $101.32 ▲ 0.74%
24,108,376
  • $59.80 ▲ 7.34%
22,524,427
  • $26.15 ▼ 1.06%
22,194,114
  • $24.65 ▼ 0.96%
21,835,360
  • $99.05 ▲ 0.15%
20,872,575
  • $34.94 ▼ 0.60%
20,561,803
    $74.57 unch
As of 8/22/2014, 04:02 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com