RateGain shares in focus after announcing $250 million acquisition of Sojern Inc.

Shares of RateGain Travel Technologies Ltd. are in focus on Wednesday, October 1, after the company said it is looking at acquiring Sojern Inc. and its subsidiaries, via its wholly-owned subsidiary RateGain Merger Sub, for $250 million via cash consideration.

The company, in an exchange filing on Monday, said RateGain Merger had entered into definitive agreements for the acquisition of the travel tech - digital marketing solutions firm.

It has also approved further investment in its wholly-owned material subsidiary RateGain Technologies Ltd, UK, which has been proposed to be used to fund the proposed acquisition, the company said.

The company added that it has also approved the issuance of a corporate guarantee of up to $150 million to banks and/or financial institutions regarding loan facilities to be availed by RateGain UK.

US-headquartered Sojern offers AI-powered hospitality, travel marketing and guest engagement platform. It reported an annual turnover of $172.2 million for the calendar year 2024.

"By combining Sojern’s demand-generation capabilities with RateGain’s existing distribution, analytics, and revenue optimization solutions, RateGain will be able to provide hospitality players with a broader set of complementary tools to compete in a complex, fast-changing travel environment," RateGain said in the exchange filing.

It added that anti-trust approvals are required under the competition laws of the US and other regulatory approvals may be required as well.

The transaction is expected to be completed within 45 to 90 days from the date of signing of the agreement, subject to regulatory approvals.

RateGain's board will also meet on Saturday, October 4, to consider fund raising proposals through the issue of equity shares and / or other convertible securities.

Shares of RateGain Travel ended the previous session 2.3% up at ₹641.5 apiece. The stock has gained 19% in the past month, 42.8% in the last six months but has declined 11.6% this year, so far.

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