Mondee Acquires Travel Marketplace Skypass, Bringing AI To SMEs

Mondee Holdings Inc MOND said it has agreed to acquire Skypass Travel Inc, a retail and wholesale provider of corporate, leisure, and humanitarian travel, based in the Dallas, Texas area.

At closing, Mondee paid a consideration of approximately $15 million, comprised of cash and Mondee common stock priced at $10 per share. Additionally, the agreement allows for a potential future earn-out opportunity of shares of Mondee common stock, contingent upon the achievement of specified annual adjusted EBITDA growth targets.

The deal is expected to support Mondee's ongoing expansion and diversification endeavors, markets serving international corporations, small and midsize businesses (SMBs).

Furthermore, the acquisition increases Mondee's reach of local, regional, and global content.

Skypass raked in gross revenue of $45 million and adjusted EBITDA of $4 million, with a margin of 60% in 2022.

Mondee's strategic approach involves harnessing its exclusive AI-Powered Travel Marketplace and technology.

Also Read: Mondee Unveils New AI Technology Platform For Better Travel Experiences

It intends to deploy service enhancement to target Skypass's clientele and generate additional revenue, including FinTech solutions and supplementary services.

"This acquisition underscores our commitment to diversifying our distribution to SMBs and international corporate accounts along with geographical expansion into India, Mexico, and LATAM," said Mondee's Founder, Chairman, and CEO, Prasad Gundumogula.

Mondee held $67.3 million in cash and equivalents as of March 31, 2023.

Price Action: MOND shares are trading lower by 2.30% at $6.80 on the last check Monday.