RateGain Travel - Attractive Acquisition Deepens Tech Moat, Business Scale: Dolat Capital

Dolat Capital Report

Rategain Travel Technologies Ltd. announced asset-purchase based acquisition of U.S based Adara Inc., a data as a service and Martech company for a total consideration of $16.1 million, including $1.5 million earn-out.

Deal is valued at an attractive at 0.65 times of trailing twelve months’ Sept 2022 revenue at Rs 2 billion Adara Inc. is Ebitda break even at this point.

Adara Inc. is a leading travel data platforms, with access to permissioned as well as actionable travel intent data, sourced from 270 pus partners, including large travel and hospitality entities, and drive better marketing return on investment for clients.

Adara under Rategain leadership is expected to grow at 15% in FY24 and achieve 15% Ebitda margins. Deal would add revenue growth of 6%/23% for FY23E/FY24E respectively. Deal would be earnings per share dilutive by 5% for FY23E, but accretive by 12% for FY24.

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