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Priceline to buy Kayak for $1.8 billion

The Priceline.com website is seen in this undated file photo.

November 9, 2012 12:00:00 AM PST
Priceline.com will buy Kayak Software in a $1.8 billion cash-and-stock deal aimed to expand its online travel business.

Kayak.com allows users to compare hundreds of travel sites when looking for flights, hotels and rental cars.

The discount travel company says Kayak will continue to operate independently as a Priceline group company.

The deal needs the approval of Kayak's shareholders and regulators.

It is expected to close in the first quarter of next year.