Ebix had announced commencement of the due diligence process in March this year.
Chennai: US software firm Ebix will acquire Nasdaq-listed domestic travel service provider Yatra Online for an enterprise value of $337.8 million, or around Rs 2,325 crore.
As per the definitive agreement signed by both entities, Yatra will become part of Ebix's Indian subsidiary EbixCash and its travel portfolio, which includes Via and Mumbai-based Mercury. But the merged entity will continue to deal with customers under the Yatra brand.
This is one of the biggest consolidations in India’s online travel market after MakeMyTrip acquired competitor GoIbibo.
Ebix had announced commencement of the due diligence process in March this year. The transaction is based on Yatra’s closing share price on March 8, 2019, the last trading day prior to the public announcement.
Based on the trailing 15-day volume weighted average price of Ebix common stock of $49.05 a share, each Yatra ordinary share convertible into Ebix common stock would be valued at $4.90, representing about 32 per cent premium to Yatra’s closing share price on March 8.
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, said Ebix Chairman, President and CEO Robin Raina.
There are cross-selling opportunities as well. Yatra, which posted revenue of $31.7 million in Q4 2018, has over 800 corporate clients. EbixCash posted an operating income of $41.5 million in Q4 2018.
“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," said Yatra Online Co-founder and CEO Dhruv Shringi.
Ebix had made a few acquisitions in the recent past. In 2017, it had acquired digital payments company ItzCash. In April 2018 it bought the forex card business of the Centrum Group—--Cent-rum Direct—for around Rs 1,200 crore.