Ebix offers to acquire Yatra Online for $336 million

Continuing its acquisition spree, Ebix has now offered to acquire Yatra Online for around $336 million (around Rs 2,350 crore) in a cash-and-stock deal. The company has offered to pay for Yatra Online at its discretion either in cash or by issuing freely tradeable Ebix stock. US-headquartered Ebix said in a statement that it intends to merge Yatra Online, which operates travel portal Yatra.com, with its Indian EbixCash subsidiary, which offers remittance services. “We believe that Yatra Online’s products and services are complementary to EbixCash’s travel portfolio of Via and Mercury; and a combination of the two companies would lend itself to significant synergies and the creation of the India’s largest and most profitable travel services company. We see substantial synergies, economies of scale and expanded growth potential for the combined business. Our interest in making an offer for Yatra Online is also borne out of our firm belief that a combination of the two companies could be substantially and immediately accretive to Ebix’s EPS,” said Robin Raina, Chairman, President and CEO, Ebix.

Meanwhile, Yatra has confirmed that it received a acquisition proposal from Ebix and said that the Company’s Board of Directors will review and consider the proposal to determine the course of action that it believes is in the best interest of the Company and all of its shareholders.

Ebix has given Yatra a week’s time to allow them to begin due diligence. It has stated that it could reduce the offer if it did not receive “a positive engagement response from the Yatra Online Board in a timely manner or if any subsequent steps are taken by the company that could have an adverse impact on its future value.”

Yatra Online, Inc. is the parent company of Gurugram-based Yatra Online Pvt Ltd which was founded in 2006 and operates the travel website Yatra.com.