ebix buys yatra

Ebix buys Yatra for Rs 2,323.6 crore; to create India’s largest travel company

Ebix Inc, the US-based provider of the on-demand software system and e-commerce services to the insurance, healthcare, monetary and e-learning industries, has nonheritable Yatra online INC, for an enterprise worth of $337.8 million (Rs 2,323.6 crore) in an all-stock deal. the two firms have entered into a definitive agreement under which Ebix will acquire Yatra via merger.

The transaction will produce India’s largest and most profitable travel services company. However, Yatra can still operate independently and also retain its complete and status in India.

“We are happy 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 system and E-commerce services companies in the world,” said Dhruv Shringi, Co-founder and CEO of Yatra online in a stock exchange filing.

The dealings have been approved unanimously by each of Ebix’s and Yatra’s Boards of directors, and it’s expected to close by the fourth quarter of 2019. under the terms of the merger, each ordinary share of Yatra is going to be entitled to receive 0.005 shares of a new class of preferred stock of Ebix (“Ebix Convertible Preferred Stock”).

Following the completion of the dealings, Yatra will become a part of Ebix’s EbixCash travel portfolio alongside Via and Mercury, and will still serve customers under the Yatra brand.

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“We are confident that combining Yatra’s loyal client base, comprehensive service providing and multi-channel platform with Ebix’s complementary Via and Mercury businesses, can produce a leading online travel platform and India’s largest corporate travel platform which will capture growth opportunities and deliver enhanced worth to shareholders,” Shringi added.

“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,” Ebix Chairman, President and CEO Robin Raina, said. Ebix’s Indian subsidiary EbixCash had acquired Mumbai-based Mercury Travels and Delhi-based Leisure corp in 2018 with an objective to establish a travel division dedicated to luxury, events and sport-related travelers. This deal is Ebix’s biggest acquisition to date in India.

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