Ebix Inc has acquired an online travel portal, Yatra Online Inc, for an enterprise value of $337.8 million (Rs 2,323.6 crore) in an all-stock deal. The acquisition marks Ebix’s biggest acquisition till date in India.
Ebix, the US-based supplier of on-demand software and e-commerce services to the insurance, healthcare, financial and e-learning industries, will acquire Yatra through a merger.
The deal will be creating India's largest and most profitable travel services company. However, Yatra will continue to operate independently and also retain its brand and status in the country.
Dhruv Shringi, Co-founder and CEO, Yatra Online, 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."
"We are confident that combining Yatra's loyal customer base, comprehensive service offering and multi-channel platform with Ebix's complementary Via and Mercury businesses, will create a leading online travel platform and India's largest corporate travel platform that will capture growth opportunities and deliver enhanced value to shareholders," he added.
Post acquisition, Yatra will become a part of Ebix's EbixCash travel portfolio alongside Via and Mercury, while continuing to serve customers under the Yatra brand.
Robin Raina, Chairman, President and CEO of Ebix, stated, "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."
“Over the last few months, we have evolved a detailed synergistic plan, that once fully executed can provide between 40 to 75 cents of accretion to the Ebix non-GAAP EPS. We are excited by the cross-selling opportunities that this combination provides us, while further strengthening our future EbixCash IPO offering," he further said.
