Ebix Inc, the US-based supplier of on-demand software and e-commerce services to the insurance, healthcare, financial and e-learning industries, has acquired Yatra Online Inc, for an enterprise value of $337.8 million (Rs 2,323.6 crore) in an all-stock deal. The two companies have entered into a definitive agreement under which Ebix will acquire Yatra via merger.
The transaction will create India's largest and most profitable travel services company. However, Yatra will continue to operate independently and also retain its brand and status in India.
"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 in a stock exchange filing.
Following the completion of the transaction, Yatra will become a part of Ebix's EbixCash travel portfolio alongside Via and Mercury, and will continue to serve customers under the Yatra brand.
"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," Ebix Chairman, President and CEO Robin Raina, said.
Ebix's Indian subsidiary EbixCash had acquired Mumbai-based Mercury Travels and Delhi-based Leisure Corp in 2018 with an objective to establish a travel division dedicated to luxury, events and sport-related travellers. This deal is Ebix's biggest acquisition till date in India.
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