In a strategic move to enhance its data-driven marketing and analytics services, RateGain Technologies Inc. has announced the merger of its wholly owned step-down foreign subsidiaries, BCV Social LLC and RateGain Adara Inc. This consolidation is aimed at leveraging business synergies, optimizing costs, and strengthening audience insights for the travel and hospitality industry.

Entities Involved in the Merger

BCV Social LLC, the Transferor Company, was established in 2013 in Delaware, U.S.A. It specializes in providing Data as a Service (DaaS), Distribution, and Market Technologies (MarTech) services tailored for the travel and hospitality sector through a Software as a Service (SaaS) platform.

RateGain Adara Inc., the Transferee Company, was incorporated in 2022 under the laws of Delaware, U.S.A. It focuses on data-driven marketing, audience segmentation, and advertising solutions for the travel sector, enabling brands to make informed decisions and enhance customer engagement and loyalty programs.

Financial Performance of the Entities (FY 2023-24)

Rationale for the Merger

The merger is expected to create operational efficiencies and drive significant value in the following ways:

• Business Synergies: The integration of the two companies will allow seamless collaboration between data analytics and digital marketing services.

• Cost Optimization: The consolidation will result in economies of scale, reducing operational and administrative costs.

• Enhanced Compliance Management: The merger will simplify regulatory compliance and reporting for RateGain’s global operations.

Regulatory and Shareholding Considerations

The transaction does not fall under related party transactions, as it is exempt under Regulation 23 (5)(c) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Since both entities are wholly owned subsidiaries of RateGain Technologies Inc., there will be no change in the shareholding pattern of the listed entity, and no additional shares or cash considerations are involved.

Implications for RateGain’s Business

The merger aligns with RateGain’s long-term strategy of enhancing its travel data analytics and audience targeting capabilities. By integrating the expertise of BCV Social LLC in MarTech with the data-driven marketing solutions of RateGain Adara Inc., the company aims to offer more robust and comprehensive travel insights for brands in the hospitality sector.

With this strategic move, RateGain is poised to further solidify its position as a leading technology provider for the global travel industry. Investors and stakeholders can expect improved operational efficiency, better market penetration, and stronger revenue streams from this merger.

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