Ebix Inc, the US-based provider of on-demand software program and e-commerce providers to the insurance coverage, healthcare, monetary and e-learning industries, has acquired Yatra On-line Inc, for an enterprise worth of $337.eight million (Rs 2,323.6 crore) in an all-stock deal. The 2 firms have entered right into a definitive settlement underneath which Ebix will purchase Yatra through merger.
The transaction will create India’s largest and most worthwhile journey providers firm. Nonetheless, Yatra will proceed to function independently and likewise retain its model and standing in India.
“We’re happy to announce this settlement with Ebix, which gives our shareholders with the chance to take part within the vital upside potential of one of many quickest rising multinational On-Demand software program and E-commerce providers firms on the planet,” mentioned Dhruv Shringi, Co-founder and CEO of Yatra On-line in a inventory trade submitting.
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The transaction has been authorised unanimously by every of Ebix’s and Yatra’s Boards of Administrators, and it’s anticipated to shut by the fourth quarter of 2019. Below the phrases of the merger, every atypical share of Yatra will probably be entitled to obtain 0.005 shares of a brand new class of most well-liked inventory of Ebix (“Ebix Convertible Most well-liked Inventory”).
Following the completion of the transaction, Yatra will grow to be part of Ebix’s EbixCash journey portfolio alongside By way of and Mercury, and can proceed to serve clients underneath the Yatra model.
“We’re assured that combining Yatra’s loyal buyer base, complete service providing and multi-channel platform with Ebix’s complementary By way of and Mercury companies, will create a number one on-line journey platform and India’s largest company journey platform that may seize development alternatives and ship enhanced worth to shareholders,” Shringi added.
“The acquisition of Yatra would lend itself to vital synergies and the emergence of EbixCash as India’s largest and most worthwhile journey providers firm,” Ebix Chairman, President and CEO Robin Raina, mentioned.
Ebix’s Indian subsidiary EbixCash had acquired Mumbai-based Mercury Travels and Delhi-based Leisure Corp in 2018 with an goal to ascertain a journey division devoted to luxurious, occasions and sport-related travellers. This deal is Ebix’s largest acquisition until date in India.