Remark Holdings Inc. entered into an agreement to sell its online travel booking website Vegas.com LLC to VDC-MGG Holdings LLC, an affiliate of the company's senior lenders, for an enterprise value of about $45 million.
The company expects the sale will help reduce debt, restructure the company's balance sheet, streamline cost structures and transform Remark Holdings into a pure-play artificial intelligence company, according to a March 19 news release. The divestment of Vegas.com will also enable Remark Holdings to expand KanKan, its AI retail solution.
Remark Holdings will use cash proceeds of the sale to pay amounts due to its senior lenders while leaving about $10 million of remaining debt owed to the senior lenders.
The transaction is expected to close in the second quarter, subject to certain closing conditions, including approval of the transaction by Remark's stockholders.