Ebix acquires Yatra for $337.8 million in merger deal

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Ebix Inc, a U.S. based, leading supplier of On-Demand software and E-commerce service provider to healthcare, insurance and finance, and e-learning industries has announced to acquire Yatra Online through merger deal of $337.8 million.

In a statement issued by the company, Ebix said that “The company has agreed to acquire the Yatra Online through merger, and in connection to this, each ordinary shares of Yatra will be allowed to receive 0.005 shares of a new class of Ebix Convertible Preferred Stocks.”

“Where, each share of Ebix Convertible Preferred Stock received by the Yatra Ordinary Shares will be converted to the 20 shares of common stocks of Ebix, valued at $4.90 per shares as on the converted basis,” the statement added.

“Which would be representing an approximate 32% premium to Yatra closing share price as of March 08, 2019 on last trading day before to public announcement of Ebix’s offer to acquire Yatra,” it said.

“Assuming the value of Yatra Ordinary Shares at $4.09 per share, the transaction has value the company at $337 million at the Ebix collar Price of $59 per share,” the statement added.

Adding to this, Ebix also said that “The company will issue 243,747 convertible preferred stock which will be converted to 4,874,931 shares of Ebix common stock.”

Speaking on the acquisition deal, Robin Rana, Chairman, President, and CEO of Ebix Inc, said, “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,” Rana said.

“And we are excited by the cross-selling opportunities that this combination provides us, while further strengthening our future EbixCash IPO offering,” he added.

Whereas, Yatra, Co-founder, and CEO, Dhruv Shringi 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.”

“Over the last several years, we have built Yatra into one of India’s most well-recognized e-commerce brands, growing into the leading corporate travel services provider and one of the largest consumer travel companies. Becoming a part of Ebix’s EbixCash travel portfolio will enable us to continue on that path,” he added.

Adding to this, Dhruv said, “As part of a larger diversified organization with the necessary scale and resources to be a leader in today’s dynamic travel marketplace. 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.”

“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. Which 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.