US software Arm Ebix has acquired Nasdaq-listed Yatra Online Inc to boost its India travel ventures at an enterprise value of $336 million, or Rs 2,350 crore in an all-stock deal.
Once the transaction is complete --- the deal marks Ebix's biggest acquisition to date in India --- it is expected to create India's largest and most portable travel services company.
The $2-billion Atlanta-based so~ware company has set a $7 for each outstanding diluted share of Yatra, totaling 48 million shares. The $7 price a piece was 84% premium to Yatra Online's closing share price of $3.8 as of March 8, 2019. However, Ebix has announced in the press note that it reserves the right to reduce its offer at its discretion if it does not receive a positive engagement response from the Yatra 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 board of directors of both the company has approved the deal. Given the fact that Ebix, led by 51-year old Kashmiri Robin Raina, is a supplier of on-demand software and e-commerce services, the deal will be a strategic At for both companies, with Ebix's expertise in the business-to-business segment. Through this deal, Ebix would be able to cater to every Financial need of consumers in the travel industry be it airlines, car rentals, or hotels and cross-sell products. In fact, after MakeMyTrip acquired rival Golbibo, Ya tr a was facing a stiff challenge from the combined entity.
The deal is expected to close by 402019. The deal remains subject to approval by Yatra shareholders, clearances by the US Securities and Exchange Commission and Nasdaq of the registration and listing of the Ebix convertible preferred stock and other customary closing conditions.
In the last two years, Ebix has acquired nearly 20 companies of various sizes to grow its footprint not only in India but the entire Southeast Asian Nations.
Deal synergy
This story is from the August 2019 edition of M & A Critique.
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This story is from the August 2019 edition of M & A Critique.
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