MakeMyTrip Acquires HotelTravel.com, An International Travel Services Company for USD 25 Million
In a revelation today, Amit Somani, the Chief Product Manager at MakeMyTrip, one of the biggest startup success stories from India, said that MakeMyTrip has Acquired HotelTravel.com. (read our detailed interview with Amit)
HotelTravel.com is an international online travel information and hotel reservations service offering discounted hotel rates in more than 100 countries worldwide. With a multicultural staff of more than 300, HotelTravel boasts of providing Customer Service in 10 different languages.
Having taken the company through a successful IPO, Deep Kalra, the founder of MakeMyTrip is an inspiration to a generation of entrepreneurs in India and this announcement is another stamp of how well the company is doing.
The total consideration payable to the Promoters of the HT Group by MakeMyTrip for acquiring the HT Group is USD 25 million, of which USD 15 million was paid partly in cash and partly in the form of MakeMyTrip shares in the first Closing that occurred on November 6, 2012. The balance USD 10 million is agreed to be paid in the form of MakeMyTrip shares, in 3 annual tranches through March 2016. Two of the Promoters of the HT Group will continue in employment with the HT Group in key capacities, and will be eligible for additional earn outs and incentives for the next 3 —4 years based on HT Group meeting certain revenue and EBIDTA targets. The additional earn outs can range from NIL to USD 35 million and are payable partly in cash and partly in the form of MakeMyTrip shares.
Highlights from the Fiscal 2013 Second Quarter Results:
- Revenue rose 25.8% year over year (yoy) to $45.7 million in 2Q13 versus $43.8 million in 2Q12
- Revenue less service costs(2) increased 12.6% yoy to $20.2 million in 2Q13; Hotels and packages contribution increased to 24.0% in 2Q13 versus 17.8% in 2Q12.
- Revenue less service costs(2) for Hotels and packages increased by 51.3% yoy in 2Q13.
- Net revenue margin(3) for Hotels and packages increased to 12.5% in 2Q13 versus 12.1% in 2Q12.
- Adjusted net income(5) was $1.2 million in 2Q13 versus $1.6 million in 2Q12.
Read the complete report here.
[Tip Off: Naman Sarawagi]