Ebix Once Again Invested in Indian Market by Merging with Yatra.com

Yatra-Ebix entity will jointly influence loyal and large base of customers, comprehensive offerings on service and Omni-channel platform to take advantage of growing and dynamic multi-billion-dollar opportunities in India.

Ebix, Atlanta-based Software Company has geared up to acquire Indian company Yatra. Ebix has a merger deal of $337.8 Mn with Gurugram based online travel booking company, which will strengthen Yatra’s position in the flight and hotel ticketing market of India. The two companies in its joint statement said that after the completion of this acquisition, Yatra will be a part of EbixCash- Ebix’s Indian subsidiary that also includes Mumbai-based Mercury and Via. However, the customers will be served under the brand of Yatra. Reportedly, for this deal, Ebix had invested $ 650 Mn in various businesses in India.

Yatra-Ebix entity will jointly influence loyal and large base of customers, comprehensive offerings on service and Omni-channel platform to take advantage of growing and dynamic multi-billion-dollar opportunities in India. Apparently, after an announcement of the merger between Yatra and Ebix, Yatra’s share has gone up by 17% in the trading of pre-market.

According to the statement released by both the companies, the board of directors of Yatra and Ebix has mutually approved this merger deal and it is expected to close by Q4 of this year. “Presuming a value of Yatra’s ordinary share at $ 4.90, the transaction suggests an enterprise value of $337.8Mn at the collar price of $ 59 per share of Ebix and post adjustment for working capital, indebtedness adjustment, warrants that need to be converted and minimum requirement of cash, a net equity value of $ 239 Mn,” the statement said.

Ebix’s Increasing Investment in India

The announcement of this merger deal is made after negotiations that happened over the months between two firms. In March this year, Ebix has offered to acquire Yatra for $336 Mn and also added that it would decrease its offer size if Yatra does not accept its proposal. Earlier in 2017, Ebix acquired a controlling stake of more than $ 120 Mn in Itz Cash. Besides it also owns assets in Pearl International Tours and Travels and Lawson Travels and Tours based in Delhi and Mumbai respectively.

Speaking on this occasion, CEO and Co-Founder of Yatra, Dhruv Shringi said that a merger with EbixCash travel folio would enable his company to be a part of a larger organization.