Ebix Inc, the US-based supplier of on-demand software and e-commerce services to the insurance, healthcare, financial and e-learning industries, has acquired Yatra Online Inc, for an enterprise value of $337.8 million (Rs 2,323.6 crore) in an all-stock deal. The two companies have entered into a definitive agreement under which Ebix will acquire Yatra via merger.
The transaction will create India's largest and most profitable travel services company. However, Yatra will continue to operate independently and also retain its brand and status in India.
"We are pleased to announce this agreement with Ebix, which provides our shareholders with the opportunity to participate in the significant upside potential of one of the fastest growing multinational On-Demand software and E-commerce services companies in the world," said Dhruv Shringi, Co-founder and CEO of Yatra Online in a stock exchange filing.
Also Read: Yatra sees revenue climb by over 20% in next three fiscals
The transaction has been approved unanimously by each of Ebix's and Yatra's Boards of Directors, and it is expected to close by the fourth quarter of 2019. Under the terms of the merger, each ordinary share of Yatra will be entitled to receive 0.005 shares of a new class of preferred stock of Ebix ("Ebix Convertible Preferred Stock").
Following the completion of the transaction, Yatra will become a part of Ebix's EbixCash travel portfolio alongside Via and Mercury, and will continue to serve customers under the Yatra brand.
Also Read: Jagannath Rath Yatra 2019: PM Modi wishes people on the occasion of Chariot festival
"We are confident that combining Yatra's loyal customer base, comprehensive service offering and multi-channel platform with Ebix's complementary Via and Mercury businesses, will create a leading online travel platform and India's largest corporate travel platform that will capture growth opportunities and deliver enhanced value to shareholders," Shringi added.
"The acquisition of Yatra would lend itself to significant synergies and the emergence of EbixCash as India's largest and most profitable travel services company," Ebix Chairman, President and CEO Robin Raina, said.
Ebix's Indian subsidiary EbixCash had acquired Mumbai-based Mercury Travels and Delhi-based Leisure Corp in 2018 with an objective to establish a travel division dedicated to luxury, events and sport-related travellers. This deal is Ebix's biggest acquisition till date in India.