Sonata Software acquires controlling stake in travel solutions provider Rezopia

Sonata Software, a Bangalore-based IT services company and reseller of software products has announced to acquire a controlling stake in Rezopia Inc., a cloud-based travel solutions provider, for an undisclosed sum. The move is aimed at strengthening its Travel Vertical leveraging California-based Rezopia's software-as-a service travel IT solutions platform, it added.

Separately, Sonata would also acquire the businesses of Xyka India Pvt. Ltd. which is the primary service provider to Rezopia's platform. As a part of this transaction, around 60 software engineers who are currently under Xyka India rolls, would move to Sonata.

In 2006, Sonata Software had tried to make a major headway into the travel vertical by acquiring a controlling 50.1 stake in TUI InfoTec, a division of Germany-based tourism and travel major, TUI Travel PLC. The company had spent around Euro 18 million (about Rs 106 crore as reported at that time) for this acquisition. However, since the JV did not move as per the desired level, it had to exit it after selling its stake.

The investment in Rezopia Inc. is said to be much smaller as compared to TUI InfoTec, sources in the know said.

"We believe the future of software services lies in blending PAAS models with customised solutions and services over different stages of an enterprise lifecycle and across different business segments within the enterprise. The Rezopia platform combined with the strong management team and travel domain specialist will further strengthen our competitive position in the travel vertical," said Srikar Reddy, MD &CEO of Sonata.

In the fiscal ended 31 March 2014, Sonata reported Rs 1566 crore in revenues, a growth of 19 per cent over the previous year. Its profit after tax stood at Rs 78 crore.