RateGain Travel Technologies to Acquire Sojern for $250 Million, Bolstering AI-Driven Hospitality Tech
RateGain Travel Technologies Limited is set to acquire Sojern, Inc. and its subsidiaries for $250 million through its wholly-owned subsidiary. This strategic move aims to create an AI-first digital marketing and distribution platform in the hospitality and travel sector. Sojern, a US-based company serving over 13,000 customers globally, reported annual gross revenue of $172.20 million. The acquisition will be funded equally through internal cash reserves and debt. The deal is expected to enhance RateGain's MarTech business, provide access to a strong US hotel customer base, and increase penetration in various travel segments. The transaction, subject to regulatory approvals, is anticipated to close within 45-90 days.

*this image is generated using AI for illustrative purposes only.
RateGain Travel Technologies Limited , a global provider of AI-powered SaaS solutions for the travel and hospitality industry, has announced a significant move to strengthen its position in the market. The company has entered into a definitive agreement to acquire Sojern, Inc. and its subsidiaries for $250 million through its wholly-owned subsidiary, RateGain Merger Sub, Inc.
Strategic Acquisition to Enhance AI Capabilities
The acquisition of Sojern, a leading AI-powered hospitality and travel marketing platform founded in 2007, aligns with RateGain's AI-first strategy. This move is expected to create a unique, AI-first digital marketing and distribution platform in the hospitality and travel sector, focusing on guest acquisition, engagement, retention, and wallet share expansion.
Sojern's Profile and Performance
Sojern, headquartered in the USA, serves over 13,000 customers worldwide, including independent and chain hotels, destinations, attractions, and travel corporations. The company reported an annual gross revenue of $172.20 million, with approximately 85% of its revenue coming from the US and Europe.
Financial Details and Funding
The $250 million acquisition will be funded through a combination of RateGain's internal cash reserves ($125 million) and debt ($125 million). RateGain has also approved an additional investment in its UK subsidiary and the issuance of a corporate guarantee of up to $150 million for loan facilities.
Synergies and Growth Opportunities
Bhanu Chopra, Founder and Chairman of RateGain, commented on the acquisition: "This acquisition is another important step in advancing RateGain's AI-first mission. Sojern's proven financial performance and expertise in MarTech complement our unified vision of embedding AI across every workflow in hospitality, from guest acquisition to retention and wallet share expansion."
The combination is expected to create tangible strategic synergies in various areas, including:
- Boosting RateGain's Martech business with a strong platform for AI-led direct demand generation
- Access to a robust hotel customer base in the US
- Increased penetration and deeper relationships with hotels, DMOs, attractions, airlines, and car rental customers
- New capabilities in guest engagement throughout the customer journey
Regulatory Approvals and Closing Timeline
The transaction is subject to customary closing conditions and regulatory approvals, including anti-trust approvals under US competition laws. It is expected to be completed within 45-90 days from the signing of the agreement.
Future Outlook
RateGain has scheduled a business update call to discuss the acquisition with investors and analysts. Additionally, the company's board of directors will meet to consider raising funds through the issuance of equity shares, convertible securities, or warrants.
This strategic move positions RateGain to offer a more comprehensive suite of AI-powered solutions to the hospitality and travel industry, potentially driving growth and innovation in the sector.
Historical Stock Returns for RateGain Travel
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
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-4.05% | -0.58% | +10.44% | +54.81% | -6.93% | +102.54% |