RateGain will stick to its previously announced commitment to buy complimentary companies and plans to acquire MyHotelShop.
Terms of the acquisition by the India-based travel technology company have not been disclosed.
MyHotelShop was created in Germany in 2012 and provides tools and services to hotels to help increase their direct sales.
It works with around 2,500 properties and chains, including the likes Ahorn, Ruby, Novum and Althoff.
RateGain says all staff and management are included in the stock purchase and MyHotelShop's CEO and founder Ullrich Kastner will become general manager of the unit within RateGain.
RateGain founder Bhanu Chopra says: "The merger will help in addressing a key challenge that the industry is facing in the post-COVID world that is witnessing increased digitzation.
"The need to become digital first is increasingly becoming chaotic and we aim to make it simpler for hotels to manage their acquisition strategy and enable them to unlock new revenue.”
In August, RateGain filed documents with Indian regulators for its forthcoming initial public offering.
The company is hoping to raise $54 million via a fresh issue of shares, while equity shares from existing investor Wagner Limited, an affiliate of private equity firm TA Associates, and the company’s founders are also being sold.
In a statement the company says the proceeds will be used for repayment of debt for RateGain U.K., deferred payment related to the acquisition of DHISCO and strategic investments.
RateGain acquired DHISCO three years ago for an undisclosed sum to boost its distribution presence.
The company bought in Harmeet Singh as CEO in October 2019 to oversee a strategy of multiple acquisitions on an annual basis.