Keen to strengthen position in India, Ebix acquires Yatra in $337.8 million deal
US-based software firm Ebix has announced the acquisition of Indian online travel company Yatra through a share merger process which values the entire transaction at $337.8 million.
After the acquisition, Yatra will put up a strong competition against market leader MakeMyTrip, which consolidated its grip on the online travel and booking market in India through its acquisition of Ibibo in 2016.
According to a press release issued by Ebix, 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”.
Ebix first offered to buy Yatra in March for $337 million, in cash or by stock.
Yatra reported a revenue of $31.7 million for the fourth quarter of 2018 and has over 800 corporate clients. It went public in 2016 following a reverse merger with listed entity Terrapin 3 Acquisition Corporation.
With 50-plus offices across six continents, Ebix provides on-demand software and e-commerce services to insurance, financial, healthcare and e-learning industries. After the acquisition, Yatra will become part of Ebix’s EbixCash, its travel portfolio, which also includes Via and Mumbai-based Mercury, and will continue to serve customers under the Yatra brand.
Commenting on the deal, Ebix Chairman, President, and CEO Robin Raina said, "The acquisition of Yatra will 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.”
The combined Yatra-Ebix entity will leverage Yatra’s large and loyal existing customer base, comprehensive service offering, and multi-channel platform to take advantage of the dynamic and growing multibillion-dollar opportunity in India, a company statement said.
Dhruv Shringi, Co-founder and CEO of Yatra, said, “Becoming a part of Ebix’s EbixCash travel portfolio will enable us to continue on that path. As part of a larger diversified organisation with the necessary scale and resources to be a leader in today’s dynamic travel marketplace, we will provide more options and an enhanced experience for our joint customers, and will be an even stronger partner to the airline, hotel, car rental and other businesses we work with.”