Restaurant reservation service OpenTable Inc. said Wednesday that it will buy U.K. restaurant reservation Web site topbtable.com for about $55 million in order to speed up its growth there.
"By combining toptable.com's robust consumer destination site for diners with our best-in-class software for restaurants, we will be able to provide a superior service to restaurants and diners in the United Kingdom," President and CEO Jeff Jordan said in a statement.
OpenTable said it plans to pay for the transaction with available cash, cash equivalents and short-term investments. The company anticipates approximately $500,000 in acquisition and integration costs occurring in the third and fourth quarters for a total of $1 million in costs.
The acquisition is expected to close in the fourth quarter.
Shares of OpenTable, based in San Francisco, gained $1.37, or 2.3 percent, to $62.10 in midday trading. The stock hit a fresh 52-week high of $63.85 earlier in the session.