Ebix to acquier Yatra Online for Rs 2,314 crore

The transaction will create India’s largest and most profitable travel services company, and a leading online travel platform poised to capture significant international growth opportunities that would also create World’s leading End-to-End Enterprise Financial and Insurance Services Provider.

 

GURUGRAM,ATLANTA and NEW YORK:
Ebix, Inc, a leading international supplier of On-Demand software and E-commerce services to the insurance, financial, healthcare and e-learning industries. and Yatra Online, Inc. today announced that they have entered into a definitive agreement under which Ebix will acquire Yatra via merger for Rs 2,314 crore.Given the debt Yatra holds, the eventual price of the deal would be in the range of Rs 1,653-1,722 crore.

 

Yatra Online is the parent company of Yatra Online Pvt. Ltd., India's leading Corporate Travel services provider and one of India's leading online travel companies.

 

Ebix has a tie-up with BSE and the joint venture has sought an insurance broking license from the insurance regulator, IRDAI. 

 

The transaction will create India’s largest and most profitable travel services company, and a leading online travel platform poised to capture significant international growth opportunities that would also create World’s leading End-to-End Enterprise Financial and Insurance Services Provider.

 

Given the highly complementary nature of each company’s travel platform, the combined entity will create India’s largest end-to-end travel industry provider, offering distribution, travel insurance, forex, MICE, Visa, and travel technology services.

 

Combining Yatra’s loyal customer base, comprehensive service offering and multi-channel platform with Ebix’s complementary Via and Mercury businesses, the creates a leading online travel platform that will capture cross selling growth opportunities across the EbixCash portfolio of products an customers, while delivering enhanced value to shareholders.
 

Following the completion of the transaction, Yatra will become part of Ebix’s EbixCash travel portfolio alongside Via and Mercury and will continue to serve customers under the Yatra brand. 

 

Ebix Chairman, President and CEO Robin Raina, commented, "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.”

 

“We are pleased to announce this agreement with Ebix, which provides our shareholders with the opportunity to participate in the significant upside potential of one of the fastest growing multinational On-Demand software and E-commerce services companies in the world,” said Dhruv Shringi, Co-founder and CEO of Yatra Online.

 

The combined company will have an international footprint with more than 11,000 employees and a travel expanse spanning GCC, ASEAN and Asia Pacific countries. The transaction also provides the necessary scale to extend its travel business to North America, Latin America and Europe. Together, Ebix and Yatra will be a comprehensive global platform with “on-the-ground” presence in major markets worldwide. 
 

In connection with the merger, each ordinary share of Yatra (“Yatra Ordinary Share”) will be entitled to receive 0.005 shares of a new class of preferred stock of Ebix (“Ebix Convertible Preferred Stock”). Each share of Ebix Convertible Preferred Stock received for each Yatra Ordinary Share will, in turn, be convertible into 20 shares of common stock of Ebix (“Ebix Common Stock”).

 

Ebix will be issuing 243,747 convertible preferred stock, which in turn will be convertible into 4,874,931 shares of Ebix common stock. Based on the trailing 15-day volume weighted average price (“VWAP”) of Ebix Common Stock of $49.05 per share, each Yatra Ordinary Share convertible into Ebix Common Stock would be valued, on an as-converted basis, at $4.90 per share, representing an approximately 32% premium to Yatra’s closing share price on March 8, 2019, the last trading day prior to the public announcement of Ebix’s offer to acquire Yatra.

 

Assuming a value of $4.90 per Yatra Ordinary Share, the transaction implies an enterprise value of $337.8mil at the Ebix collar price of $59 per share and post adjustment for Indebtedness, Working capital, Warrants to be converted and minimum cash requirement, a net equity value of $239 million.


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