Ebix to acquire Yatra at an enterprise value of USD 337.8 mn

US-based software firm Ebix Inc has signed a definitive agreement with Yatra Online Inc to acquire the online travel agency through a merger deal at an enterprise value of USD 337.8 million (around Rs 2,325 crore), according to a statement.

Following the completion of the transaction, Yatra will become part of Ebix's travel portfolio, EbixCash, and will continue to serve customers under the Yatra brand, the two companies said in a joint statement Wednesday.

Commenting on the development, Ebix Chairman, President and CEO Robin Raina said 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.

"We are excited by the cross-selling opportunities that this combination provides us, while further strengthening our future EbixCash IPO offering," he added.

The transaction has been approved unanimously by each of Ebix's and Yatra's Boards of Directors, and it is expected to close by the fourth quarter of 2019, the statement said.

"Assuming a value of USD 4.90 per Yatra ordinary share, the transaction implies an enterprise value of USD 337.8 million at the Ebix collar price of USD 59 per share and post adjustment for indebtedness, working capital, warrants to be converted and minimum cash requirement, a net equity value of USD 239 million," it added.

Commenting on the development, Yatra Online Co-founder and CEO Dhruv Shringi said: "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."