Shares of RateGain Travel Technologies rose 4 per cent in Tuesday’s trade after the company acquired Adara Inc, a US-based platform. In an exchange filing, the software-as-a-service (Saas) player informed the bourses that it has entered into an asset purchase agreement to acquire substantially all of the assets of Adara Inc on January 2.
RateGain Travel Technologies said that the acquisition will be made for a consideration of $16.1 million (Rs 132.4 crore) including an upfront payment of $14.6 millions (Rs 120 crore), whereas the remaining amount of $1.5 million (Rs 12.4 crore) will be paid by December 31, 2023.
Following the announcement, shares of RateGain Travel Technologies jumped to 4 per cent to Rs 302.20. The scrip had settled Monday’s session at Rs 291.65.
The acquisition is made through its recently incorporated wholly owned subsidiary named RateGain Adara Inc, USA, the filing said. The acquisition is not a related party transaction and will be completed within a month of agreement, the company clarified.
Adara Inc, which operates in data and software as a Service sector, clocked a revenue of $27.4 million (Rs 204.4 crore) for FY 2021-22, which was $21.2 million (Rs 157.8 crore) in FY 2020-21 and $100.7 million (Rs 729.5 crore) in FY 2019-20.
RateGain Travel was listed in December 2021. The scrip is trading about 30 per cent below its issue price of Rs 425. However, compared to its 52-week highs of Rs 525, the scrip is about 43 per cent lower.
Adara Inc is one of the world’s largest travel data exchange platforms, providing access to permissioned and ethically sourced intent data, with a global presence with customers across geographies like US,Europe, Middle East and Asia.
Data partners supply aggregated real time traveller data, that allows them to deliver actionable insights and predictive intelligence to drive better marketing ROI. It leverages digital profiles scored on travel intent to provide custom audience segments to companies for optimising their marketing campaigns.
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