US-based software firm Ebix Inc to acquire Yatra Online Inc at an enterprise value of $337.8 mn

US-based software firm Ebix Inc has signed a definitive agreement with Yatra Online Inc to acquire the online travel agency through a merger deal at an enterprise value of $337.8 million (around Rs 2,325 crore), according to a statement

Press Trust of India July 17, 2019 19:40:14 IST
US-based software firm Ebix Inc to acquire Yatra Online Inc at an enterprise value of $337.8 mn
  • Following the completion of the transaction, Yatra will become part of Ebix's travel portfolio, EbixCash, and will continue to serve customers under the Yatra brand, the two companies said in a joint statement on Wednesday

  • The transaction has been approved unanimously by each of Ebix's and Yatra's Boards of Directors

  • In connection with the merger, each ordinary share of Yatra will be entitled to receive 0.005 shares of a new class of preferred stock of Ebix

New Delhi: US-based software firm Ebix Inc has signed a definitive agreement with Yatra Online Inc to acquire the online travel agency through a merger deal at an enterprise value of $337.8 million (around Rs 2,325 crore), according to a statement.

Following the completion of the transaction, Yatra will become part of Ebix's travel portfolio, EbixCash, and will continue to serve customers under the Yatra brand, the two companies said in a joint statement on Wednesday.

Commenting on the development, Ebix Chairman, President and CEO Robin Raina said 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.

USbased software firm Ebix Inc to acquire Yatra Online Inc at an enterprise value of 3378 mn

Representational image. Reuters.

"We are excited by the cross-selling opportunities that this combination provides us, while further strengthening our future EbixCash IPO offering," he added.

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, the statement said.

"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 added.

Commenting on the development, Yatra Online Co-founder and CEO Dhruv Shringi said: "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."

As part of a larger diversified organisation with the necessary scale and resources to be a leader in today's dynamic travel marketplace, "we will provide more options and an enhanced experience for our joint customers and will be an even stronger partner to the airline, hotel, car rental and other businesses we work with," he added.

In connection with the merger, each ordinary share of Yatra will be entitled to receive 0.005 shares of a new class of preferred stock of Ebix, the statement said.

Each share of Ebix convertible preferred stock received for each Yatra ordinary share will, in turn, be convertible into 20 shares of common stock of Ebix, it added.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Lakshmi Vilas Bank placed under moratorium, withdrawals capped at Rs 25,000; RBI proposes merger with DBS Bank
India

Lakshmi Vilas Bank placed under moratorium, withdrawals capped at Rs 25,000; RBI proposes merger with DBS Bank

TN Manoharan, former non-executive chairman of Canara Bank, has been appointed as the administrator of the bank

Salesforce.com is buying work-chatting service Slack for $27.7 billion
News & Analysis

Salesforce.com is buying work-chatting service Slack for $27.7 billion

The Slack acquisition announced on Tuesday is by far the largest in the 21-year history of Salesforce.com.

PUBG Corp and Krafton Inc merge to into a single entity to form PUBG Studio
News & Analysis

PUBG Corp and Krafton Inc merge to into a single entity to form PUBG Studio

PUBG Studio will continue to develop and support both PUBG and PUBG Mobile moving forward.