Travel and hospitality technology services provider RateGain Travel Technologies Ltd on Tuesday said it has entered into a pact to buy data exchange platform Adara Inc for $16.1 million (around Rs 134 crore).
With this buyout, RateGain 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, it said in a statement.
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, as per BSE filings.
The acquisition is likely to be completed 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.
“Adara’s key differentiator is its access to travel-intent data from the world’s top travel and hospitality players as well as destination marketing organizations and relying less on traditional methods of tracking consumer intent,” said Bhanu Chopra, chairman and founder, RateGain.
RateGain further said that industry needs a platform like Adara to help adapt to changing guest expectations as acquiring guests is becoming costlier.
Due to increasing costs and the need to have more experiences, travelers are looking to try different brands that can provide them more value through personalized experiences and offers, but brands today have limited visibility into their preferences, the statement added.
Last year, RateGain earmarked Rs 80 crore for inorganic growth via strategic investments and merger and acquisition routes. RateGain said it is in touch with around 185 companies that are on its target list. Chopra believes that the company is flexible when it comes to average ticket sizes. He says, if a company has demonstrated that it is a viable business and achieved decent scale with revenue and clientele, it can be looked at.
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.
The company raised nearly Rs 600 crore after listing on stock exchanges in late 2021 and counts Nomura India Investment, Kuwait Investment Authority, Goldman Sachs Funds, Avataar Holdings and TA Associates among its investors.
RateGain works with clients across large hotel chains such as Six Continents Hotels, Inc., an InterContinental Hotels Group company; Kessler Collection, a luxury hotel chain; Lemon Tree Hotels Ltd and Oyo Hotels and Homes Pvt Ltd and several prominent OTAs (online travel agencies).
RateGain Travel Technologies shares opened 2.9% higher at Rs 300.05.
