RCG agreed to acquire OneTravel Inc., a privately held online travel company, for $25.5 million in cash and a note.
RCG, which invests in travel and technology companies, agreed to pay $2.5 million deposit at the signing, $10.5 million in cash and $12.5 million in the form of a six-month promissory note that is convertible into RCG stock, reports Dow Jones.
OneTravel runs the travel Web sites CheapSeats.com and DiscountHotels.com
In a press release Thursday, RCG said the deal will enable the company to reach more than $300 million in gross bookings for the first 12 months after closing.
In 2004, OneTravel posted revenue of about $8.2 million based on gross bookings of about $94 million. For the fiscal year ended June 2004, RCG posted a loss of $12.1 million, or 72 cents a share, on revenue of $180.8 million.
Earlier this month, RCG most recently closed a deal to buy 1-800-CHEAPSEATS, another online travel company.
