Ebix to acquire Yatra Online via merger
Under Ebix’s leading travel platform, the combined company will leverage Yatra’s large and existing customer base
Published - Jul 17, 2019 5:47 PM Updated: Jul 17, 2019 5:47 PM
Ebix and Yatra Online on Wednesday announced that they have entered into a definitive agreement under which Ebix will acquire Yatra via merger.
In connection with the merger, each ordinary share of Yatra will be entitled to receive 0.005 shares of a new class of preferred stock of Ebix (Ebix Convertible Preferred Stock). Each share of Ebix Convertible Preferred Stock received for each Yatra Ordinary Share will, in turn, be convertible into 20 shares of common stock of Ebix (Ebix Common Stock 337.8 million).
Based on the trailing 15-day volume weighted average price (VWAP) of Ebix Common Stock of $49.05 per share, each Yatra Ordinary Share convertible into Ebix Common Stock would be valued, on an as-converted basis, at $4.90 per share, representing an approximately 32 per cent premium to Yatra’s closing share price on March 8, the last trading day prior to the public announcement of Ebix’s offer to acquire Yatra.
Ebix Chairman, President and CEO Robin Raina, 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. We are excited by the cross-selling opportunities that this combination provides us, while further strengthening our future EbixCash IPO offering.”
Dhruv Shringi, Co-founder and CEO of 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.”
“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. 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, 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,” Shringi said.
Under Ebix’s leading travel platform, the combined company will leverage Yatra’s large and existing customer base, comprehensive service offering and multi-channel platform to take advantage of the dynamic and growing multibillion-dollar opportunity in India.
The combined company will have an international footprint with more than 11,000 employees and a travel expanse spanning GCC, ASEAN and Asia Pacific countries. The transaction also provides the necessary scale to extend its travel business to North America, Latin America and Europe. Together, Ebix and Yatra will be a comprehensive global platform with “on-the-ground” presence in major markets worldwide.
The other aspects include creating end-to-end enterprise financial and insurance services provider. It will deliver short and long-term financial benefits. The deal will also lead to creation of India’s largest financial and travel EbixCash Exchange.
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