TA Associates has completed a minority investment in RateGain, an SaaS provider of revenue management and distribution channel management software, and real-time pricing data and analytics to the hospitality and travel services industries.
In the travel segment, RateGain’s products serves suppliers and intermediaries, including airlines, cruise lines, car rental providers, online travel agents, tour operators and wholesalers, to optimize product pricing and monitor competitive offerings. In the hospitality segment, RateGain serves the hotel industry with products that optimize pricing, ensure rate parity, and manage rates and inventory across booking channels. The company serves more than 5,500 clients around the world including approximately 3,000 individual hotel properties. RateGain was founded in 2004 and is headquartered near New Delhi in Noida, India, with additional offices in Spain, the United Arab Emirates, the United Kingdom and the United States (www.rategain.com).
“We have actively tracked RateGain for many years and are pleased to have advised on the investment in this highly attractive business,” said Naveen Wadhera, Co-Head of Asia at TA Associates Asia Pacific. “In addition to a compelling SaaS model, the company has strong financial momentum and a high-quality and growing customer base across both the hospitality and travel segments. We will work with RateGain management to explore new business opportunities among current and prospective clients, and further geographic expansion, particularly in North America and Asia Pacific.”
TA Associates makes buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries. Since founding in 1968, TA has invested in over 440 companies globally and has raised more than $18 billion in capital. The firm has offices in Boston, Menlo Park, London, Mumbai and Hong Kong (www.ta.com).
“RateGain’s highly innovative solutions are widely appreciated by clients who need real-time access to inventory and pricing data, and greater automation in revenue management. The hotel technology segment is also highly fragmented, with a recognized need for further consolidation. Given these industry dynamics, we see continued opportunities for RateGain to further expand its leadership position,” said Dhiraj Poddar, Co-Head of India at TA Associates Advisory Pvt.
Goodwin Procter and Nishith Desai provided legal counsel services to TA Associates. Platinum Partners served as legal counsel and Signal Hill provided advisory services to RateGain.
© 2015 PEPD • Private Equity’s Leading News Magazine • 1-14-15
