Ebix acquires Yatra Online in a ₹2,300-crore transaction

U.S.-headquartered Ebix, a provider of on-demand software and e-commerce services, on Wednesday announced the acquisition of homegrown travel portal Yatra Online for $337.8 million (more than ₹2,300 crore).

Following the completion of the transaction, Yatra will become part of Ebix’s EbixCash travel portfolio, creating one of India’s “largest and most profitable” travel services companies. Both the firms are listed on the NASDAQ.

“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, besides being the largest enterprise financial exchange in the country...

“We are excited by the cross-selling opportunities that this combination provides us, while further strengthening our future EbixCash IPO offering,” said Robin Raina, chairman, president and CEO, Ebix.

Yatra will continue to serve customers under its brand, alongside EbixCash’s two other travel brands — Via and Mercury.

Under Ebix’s travel platform, the combined firm will leverage Yatra’s existing customer base, service offering and multi-channel platform to take advantage of the growing multi-billion-dollar opportunity in India, the statement said.

The combined company will have an international footprint with more than 11,000 employees and a travel expanse spanning GCC, ASEAN and Asia Pacific countries. The transaction also provides the necessary scale to extend its travel business to North America, Latin America and Europe.

The statement said that based on the 15-day volume weighted average price of of Ebix Common Stock of $49.05 per share, each Yatra ordinary share convertible into Ebix common stock would be valued, on an as-converted basis, at $4.90 per share.

This is approximately 32% premium on Yatra’s closing share price on March 8, 2019, the last trading day prior to the public announcement of Ebix’s offer to acquire Yatra.

“Assuming a value of $4.90 per Yatra ordinary Share, the transaction implies an enterprise value of $337.8 million at the Ebix collar price of $59 per share and post adjustment for indebtedness, working capital, warrants to be converted and minimum cash requirement, a net equity value of $239 million,” it said.

Ebix will be issuing 243,747 convertible preferred stock which, in turn, will be convertible into 4,874,931 shares of Ebix common stock. Ebix expects this transaction to be 40 to 75 cents accretive to its non-GAAP earnings per share within a period of six to 12 months from closing.

Dhruv Shringi, co-founder and CEO, Yatra Online, said, “Over the last several years, we have built Yatra into one of India’s most well-recognised e-commerce brands, growing into the a leading corporate travel services provider and one of the largest consumer travel companies. Becoming a part of Ebix’s EbixCash travel portfolio will enable us to continue on that path.”

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Printable version | May 14, 2021 3:30:54 PM |

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