New Delhi, Oct. 1 -- Mumbai-listed travel and hospitality technology services provider RateGain Travel Technologies Ltd has entered into definitive agreements to acquire US-based travel advertising and marketing solutions platform Sojern Inc. and its subsidiaries for $250 million (about Rs 2,217 crore) in an all-cash transaction.

The acquisition is being structured via RateGain's newly formed wholly owned US subsidiary, RateGain Merger Sub, Inc, the company said in a statement.

RateGain will fund the deal through increased investments in its UK arm and has approved a corporate guarantee of up to $150 million to secure loans for the acquisition. The guarantee will be issued to banks and financial institutions for credit facilities extended to RateGain UK.

Sojern, founded in 2007, operates in the travel marketing and guest engagement segment. It operates an AI-powered demand generation, audience targeting, multichannel activation, and optimization platform.

For the calendar year 2024, Sojern reported total revenue of $172.2 million. This is up from $149.3 million in 2022 and $165.7 million in 2023. The company operates globally with footprints in the US, the UK, Ireland, the UAE, Singapore, France, and Mexico.

RateGain said the acquisition aligns with its broader AI-first and inorganic growth strategy, aimed at deepening its presence across the travel and hospitality tech stack. It said that, by combining Sojern's strength in demand generation with its existing capabilities in distribution, revenue optimisation, and analytics, the company seeks to deliver a unified platform to hotels and travel players.

The deal requires antitrust and competition clearances, notably under US regulations, and is expected to be completed within 45 to 90 days, subject to regulatory approvals.

RateGain has been steadily building scale through inorganic growth, with the Sojern deal marking its largest acquisition to date. Over the past two years, the company has used smaller tuck-ins like the 2023 acquisition of US-based Adara for $16 million to enhance its predictive intelligence and data analytics stack.

In 2021, the company acquired myhotelshop, a Germany-based online marketing service for hoteliers. It has also acquired Chicago-based DHISCO and Dallas-based BCV in the past for inorganic expansion.

Published by HT Digital Content Services with permission from VC Circle.