Newsletter
RateGain Travel Tech has announced plans to acquire US-based Sojern Inc and its subsidiaries for $250 million. The stock gained nearly 4% on the back of this news.
Sojern is a provider of digital marketing and guest engagement solutions for the travel and hospitality industry.
What’s happening: the deal will be paid fully in cash and carried out through RateGain Technologies, the company’s own unit. RateGain also said it will provide a guarantee of up to $150 million to banks and financial institutions for loans that its UK arm may take.
The transaction is expected to be completed within 45 to 90 days from the date of signing of the agreement, subject to regulatory approvals.
The why: the main goal of this move is to build a new, AI-powered platform that helps hotels, airlines, car rental services, attractions, and travel organisations.
Worth noting: RateGain has been expanding its scale through acquisitions, and this marks its biggest deal yet.
Why it matters: once completed, the acquisition is expected to bring several benefits by combining the strengths of both companies. It will give RateGain a stronger base in marketing technology by using AI to generate more direct business for its clients. It will also provide better access to a large number of hotel customers in the U.S.
