Shares of RateGain Travel Technologies Ltd skyrocketed 8% on Wednesday, 1 October, after the company announced its plans to acquire Sojern Inc. and its subsidiaries for $250 million in cash through its wholly-owned subsidiary RateGain Merger Sub.

The company announced in an exchange filing on Monday that RateGain Merger has reached definitive agreements to acquire the travel tech – digital marketing solutions organisation.

It has also approved additional investment in its wholly-owned material subsidiary RateGain Technologies Ltd, UK, which is expected to be utilised to support the proposed acquisition, the business stated.

The company also announced that it has approved the issuing of a corporate guarantee of up to $150 million to banks and/or financial institutions for lending facilities to be used by RateGain UK.

Sojern, headquartered in the United States, provides an AI-powered platform for hospitality, travel marketing, and guest interaction. It recorded an annual revenue of $172.2 million for the fiscal year 2024.

In its regulatory filing, the company said, “By combining Sojern’s demand-generation capabilities with RateGain’s existing distribution, analytics, and revenue optimisation solutions, RateGain will be able to provide hospitality players with a broader set of complementary tools to compete in a complex, fast-changing travel environment.”

It stated that antitrust permits are necessary under US competition rules, and other regulatory licenses may also be required. The acquisition is expected to be finalised within 45 to 90 days of signing the agreement, subject to regulatory approvals.

RateGain’s board will also meet on Saturday, 4 October, to discuss fundraising ideas that include the issuance of equity shares and/or other convertible securities.

At 12:30 pm, the shares of RateGain were trading 2.26% higher at Rs 659.35 on NSE.

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