Ebix Inc., a supplier of on-demand software and e-commerce services, said on Wednesday that it has acquired online travel portal Yatra Online Inc., for an enterprise value of $337.8 million, in an all stock transaction.
“We see the deal as a strategic fit for both companies, with Ebix’s expertise in the B2B (business-to-business) segment, where we are also leaders in corporate travel bookings," said Dhruv Shringi, co-founder and chief executive officer, Yatra Online. Shringi also expected the deal to help Yatra enter more than 60 countries that it is present in.
However, Yatra will continue to be independently run and will retain its brand and status in India.
Ebix makes software for the insurance, financial and healthcare industries. Its Indian subsidiary, EbixCash, bought Mumbai-based Mercury Travels and Delhi-based Leisure Corp. last year, with an aim to create a travel division focused on luxury-, events- and sports-related travellers.
Ebix first offered to buy Yatra in March for $337 million, in cash or by stock.
Ebix chairman, president and CEO Robin Raina said in a stock exchange filing: “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," he added.
The deal marks Ebix’s biggest acquisition till date in India. Ebix had entered India with the purchase of a 80% stake in ItzCash for ₹800 crore from Essel Group and other shareholders in May 2017. Since then, the company has acquired a dozen companies across sectors, such as remittance, travel, foreign exchange and education. In August 2018, it spent ₹1,200 crore to acquire Centrum group’s forex business Centrum Direct Ltd.
Ebix has also acquired a bunch of companies in the travel space. In November 2017, it had spent around $75 million to acquire online travel portal Via.com. In the same month, it had acquired Mercury Travels and Leisure Corp. for $14.2 million.