US software company Ebix to acquire Gurugram-based online travel agent Yatra Online for an enterprise value of $ 338 million or rupee 2,327.4 crore in a fully transaction in actions.
Once the transaction is complete, Yatra will become part of Ebix’s travel portfolio, EbixCash. Ebix offered to pay $ 4.90 per Yatra share, a premium of 26% over Yatra’s closing price on Tuesday and 32% over its closing price on March 8, when Ebix made for the first time an offer to buy from the Indian company. Ebix Chairman and CEO Robin Raina said the acquisition of Yatra would lend itself to significant synergies and the emergence of EbixCash as the largest and most profitable travel services company in the world. ‘India. “Over the past several months, we have developed a detailed synergistic plan that, when fully executed, can provide between 40 and 75 cents of growth in non-GAAP Ebix BPA. We are excited about the cross-sell opportunities while strengthening our future EbixCash IPO offering, ”he said.
The transaction has been unanimously approved by each of the directors of Ebix and Yatra and is expected to close in the October-December quarter after receiving regulatory approvals.
Assuming a value of $ 4.90 per Yatra common share, the transaction involves an enterprise value of $ 337.8 million at the Ebix necklace price of $ 59 per share and after adjustment, net equity. de Yatra would be $ 239 million, the companies said in a joint statement Wednesday. .
“Fundraising was not the goal of the transaction,” said Dhruv Shringi, co-founder and CEO of Yatra Online. He said Yatra will continue to exist, but a decision on its merger with other Ebix group companies in India has yet to be made.
“We will be better capitalized now as part of a larger group, but we will continue to take a measured approach to growth. We don’t need to make big discounts to get customers, ”he said.