Ebix Inc., the US-based online supplier of e-commerce and on-demand service software to healthcare, insurance, finance and e-learning industries has acquired Yatra. The India-based online travel agency said it has signed a consensus with Ebix where it will acquire Yatra through a merger, taking up an all stock deal of $337.8 million.
Each ordinary share of Yatra will be entitled to 0.005 shares of new class of preferred stock of Ebix. Each of these shares received will be convertible into 20 shares of common stock of Ebix. The deal thus propels the Yatra and Ebix joint entity as the country’s largest and most profitable company in the travel space where Yatra will still be continuing to function independently and retain its brand in India.
Ebix Common Stock will be valued on an as-converted basis at $4.90 per share. On a whole, the deal implies a net equity value of $239 million after adjusting indebtedness. After the completion of the entire transaction, Yatra will be a part of Ebix Cash travel portfolio.
This merger will lead to the companies’ combined significant synergies and injecting EbixCash to become India’s largest travel services provider and enterprise financial exchange in the country. The move will further strengthen EbixCash’s future IPO offering. On the other hand, Yatra will be a part of the fastest growing multinational, and be an upper hand to its potential.
Speaking about the acquisition, Dhruv Shringi, Co-founder and CEO of Yatra Online, in a stock exchange filing, had to say the following-
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.”
The deal is such that Ebix will be issuing 234,747 convertible preferred stock which will be converted to 4,874,931 Ebix common stock. The acquisition has been approved by the Board of Directors of both companies.
It is worthy to note that in the recent past, Ebix has been on a buying spree, lapping up travel service startups like Via.com and Mercury in the last 2 years.