Active Stocks
Fri Dec 01 2023 15:59:55
  1. Tata Steel share price
  2. 129.95 1.56%
  1. Reliance Industries share price
  2. 2,393.45 0.72%
  1. NTPC share price
  2. 269.05 2.97%
  1. ICICI Bank share price
  2. 946.35 1.19%
  1. HDFC Bank share price
  2. 1,555.5 -0.22%
Business News/ Companies / News/  Ebix acquires two travel services companies for $14.2 million
Back Back

Ebix acquires two travel services companies for $14.2 million

Acquisition of Mercury, Leisure Corp. will increase workforce of Ebix in India to approximately 7,600 employees

Robin Raina, chief executive officer, EbixPremium
Robin Raina, chief executive officer, Ebix

Mumbai: Nasdaq-listed Ebix Inc on Thursday said it has acquired Mumbai-based Mercury Travels and Delhi-based Leisure Corp for approximately $14.2 million. Ebix is a supplier of on-demand software and e-commerce services to the insurance, financial, healthcare and e-learning industries. The acquisitions were made through Ebix’s Indian subsidiary, EbixCash.

Founded in 1948 as an Oberoi Hotel group company, Mercury is a popular luxury travel brand with a network of 20 branch offices, across 16 major cities in India. The company is also seen as a leader in the adventure space, with specialisation in organising adventure safaris, sea water rafting and Himalayan expeditions. Leisure Corp was incorporated in 1997 and is engaged in events related to the travel space and luxury trains and luxury travel, with a focus on the insurance and financial sector and incoming luxury travellers.

Ebix said it is acquiring the two companies to create a new division focusing on a niche segment of the travel market.

“The new Travel Exchange named Mercury—An EbixCash Luxury initiative, will focus on the luxury, events and sports related traveler and will be led by the Leisure Corp Founder Naveen Kundu. Ebix will have a controlling 85% share in the venture and Kundu will hold a 15% shareholding," Ebix said.

The Mercury Exchange will comprise Mercury Travel’s entire corporate, leisure and adventure related travel business, Leisure Corp’s entire sports and events related travel business and’s events based travel business.

Ebix had acquired, an online travel and assisted e-commerce exchange, in November 2017 for $74.9 million.

“Ebix believes that the Mercury business initiative can continue to grow at the rate of 20% or more annually with operating margins of 30% or more, once fully integrated. Ebix expects the acquisition to be immediately accretive to its earnings. Ebix funded the acquisition using its internal cash reserves and did not use any investment bankers for the transaction," the statement said.

The acquisition of Mercury and Leisure Corp. will increase the employee strength of Ebix in India by around 400 employees to approximately 7,600 employees.

“Mercury has built a reputation for itself in the affluent luxury market place with its levels of service, built around the high standards associated with an effort backed by the Oberoi Hotels chain. Leisure Corp is a leader in the events based travel business space with a clear focus on the financial and insurance industries. We are excited to be able to bring these two leading companies together, with the goal of creating a pioneering luxury travel initiative," said Robin Raina, chairman, president and CEO at Ebix.

Milestone Alert!
Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.

Swaraj Singh Dhanjal
" Based in Mumbai, Swaraj Singh Dhanjal is responsible for Mint’s corporate news coverage. For the past eight years he has been writing on the biggest deals in private equity, venture capital, IPO market and corporate mergers and acquisitions. An engineer and an MBA, he started his journalism career in 2014 with Mint. "
Catch all the Elections News, Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Updated: 02 Aug 2018, 11:57 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App