Travel and hospitality technology services provider RateGain Travel Technologies on Tuesday said that it will buy data exchange platform Adara Inc for $16.1 million (around Rs 134 crore).
RateGain said in a statement, with this buyout, It aims to boost its position across commercial teams in hotel chains, airlines and car rental companies that work both with the company and Adara as well as give access to a niche segment of over 50 destination marketing firms in the US.
Further, as per BSE fillings, the company will pay an upfront consideration of $14.6 million or (Rs 120.1 crore) while the rest of $1.5 million (Rs 12.4 crore) will be paid on or before December 31, 2023.
The deal is expected to be closed within a month from the date of execution of the asset purchase agreement.
Founded in 2009 by Charles Mi in San Francisco, Adara provides access to ethically sourced customer data.
RateGain further said, as acquiring guests is becoming costlier every other day, therefore, the industry needs a platform like Adara to help adapt to changing guest expectations.
According to the statement, travellers want to try new brands that can provide them with more value through personalised experiences and offers, but brands today have limited visibility into their preferences.
RateGain set aside Rs 80 crore last year for inorganic growth through strategic investments and merger and acquisitions. RateGain stated that it is in contact with approximately 185 companies on its target list. Chopra believes that the company is adaptable in terms of average ticket size. According to him, if a company has demonstrated that it is a viable business and has achieved a reasonable level of revenue and clientele, it can be considered.
Founded in 2004, RateGain offers a suite of interconnected products that manage the revenue creation value chain for travel and hospitality companies through data analytics and integration with other technology platforms. It is the largest SaaS platform in the hospitality and travel industry in India. RateGain has over 600 employees across the globe.
After listing on stock exchanges in late 2021, the company raised nearly Rs 600 crore from investors including Nomura India Investment, Kuwait Investment Authority, Goldman Sachs Funds, Avataar Holdings, and TA Associates.
RateGain works with clients from a variety of hotel chains, including Six Continents Hotels, Inc., an InterContinental Hotels Group company; Kessler Collection, a luxury hotel chain; Lemon Tree Hotels and Oyo Hotels and Homes, as well as several prominent online travel agencies (online travel agencies).
Shares of RateGain Travel Technologies opened 2.9 per cent higher at Rs 300.05.
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