New Delhi: In a big move, US-based Ebix Inc acquired Yatra Online Inc for an enterprise value of $337.8 million (Rs 2,323.6 crore) in an all-stock deal, stated a report. In this regard, the company had sent a letter to the Board of Yatra Online Inc outlining the offer to acquire 100 per cent of its outstanding stock at a rate of $ 7 per share on a debt-free basis.
A merger of the two companies is likely to generate between 25 to 30 cents accretion for the shareholders, noted the Ebix company. Notably, both the firms Ebix Inc and Yatra Online Inc are listed on the NASDAQ. Despite the merger, Yatra will still retain its brand and status and will function independently in India.
An official statement made by Ebix Inc read, “The Ebix offer, based on approximately 48 million Yatra Online diluted shares outstanding, represents an 84 per cent premium to Yatra Online’s closing share price of $ 3.80 as of March 8, 2019.”
Earlier, Ebix had offered to pay for the acquisition in Ebix stock, with a minimum collar value of $ 59 per Ebix share. This value is calculated by dividing the total acquisition price payable to Yatra shareholders by the 10-day average price of the Ebix stock, preceding the closing date, Ebix noted. Besides, the company also stated that it reserves the right to reduce its offer at its discretion if it does 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, the statement said.
The Gurugram-based Yatra.com is a major player in the online travel sector and provides services including domestic and international air ticketing, hotel bookings, homestays, holiday packages, bus ticketing, rail ticketing, activities, and ancillary services. Ebix Inc, on the other hand, is the supplier of on-demand software and e-commerce services to the insurance, healthcare, financial and e-learning industries.
(With Agency inputs)