Ebix Inc, the US multinational that provides on-demand software and e-commerce services to a host of industries, has announced its interest in buying out the Nasdaq-listed domestic travel portal Yatra Online Inc for USD 7 per share, an 84 percent premium on a debt-free basis.
If the deal goes through this will be second deal for Ebix in seven months, having bought Centrum group’s forex and travel business Centrum Direct for a reported Rs 1,2000 crore valuation last August.Centrum Direct was the largest travel business and forex dealer in the country before the deal.
Yatra Online Inc is the parent of the Gurugram-based Yatra Online, which is the country’s largest corporate travel services provider with over 800 corporate customers through the portal Yatra.com.
Commenting on the acquisition plan, Ebix chairman, president and chief executive Robin Raina, said, “We believe that Yatra Online’s products and services are complementary to EbixCash’s travel portfolio of Via and Mercury.”
“Our interest in making an offer for Yatra Online is also borne out of our firm belief that a combination of the two companies can be substantially and immediately accretive to Ebix earnings and margins,” Raina added.
Ebix also made it clear that the deal will be void if the Yatra board does not respond by March 18.Ebix believes that Yatra Online can generate revenue upwards of USD 150 million annually with over 30 percent operating margin, within 6 months of the acquisition by Ebix and that a merged entity can generate 25-30 cents in value accretion for the shareholders.