In a move aimed at taking on the competition in the country's booming travel industry space, online travel agent Yatra has inked a deal to merger its business with the Nasdaq-listed Terrapin 3 Acquisition Corporation (TRTL). The merger deal values Yatra at an enterprise value of $218 million.
Post the deal, the merged entity will continue to be run by Yatra's management team under leadership of chief executive and co-founder Dhruv Shringi, who founded the portal in 2006.
“We are excited to partner with TRTL in a transaction that we believe will enable Yatra to continue its growth as a new public company,” a report in the Mint said quoting Shringi.
We look forward to expanding our already extensive network of domestic and international partnerships with hotels, airlines, car services and tour package promoters, as well as further strengthening our brand presence and technology platform," added Shringi.
As per the understanding, the existing shareholders of Yatra will maintain their 35 percent shareholding of the issued and outstanding shares in the combined company. Also, the merged company will be listed on Nadaq as Yatra under the symbol YTRA.
Yatra may receive additional consideration of up to $35 million upon achievement of certain financial objectives.
Yatra has been funded by several large investors such as Valiant Capital Management, Norwest Venture Partners, as well as Reliance Venture Asset Management Ltd, Web18 of TV18 Group and Intel Capital among its backers.
In tune With the booming online air travel reservation and hotel bookings, Yatra witnessed 2.8 million bookings accounting for a total transaction value of $900 million during the fiscal year ended 2015-16.
With regards to TRTL, the entity has been formed as a special purpose acquisition company for undertaking merger, acquisition, and had raised $212.75 million in its IPO in July 2014.
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