On Monday, software company Ebix Inc said it has supplied to collect fellow Nasdaq-listed enterprise Yatra Online Inc for $336 million (around Rs 2,350 crore) in a coins-and-inventory deal geared toward boosting its portfolio of Indian travel ventures.
US-centered Ebix declared that it intends to merge Yatra Online, which operates the journey portal Yatra.Com, with its Indian EbixCash subsidiary, which gives remittance services.
“We accept as true that Yatra Online’s services and products are complementary to EbixCash’s tour portfolio of Via and Mercury, and a combination of the two groups would lend itself to widespread synergies and the creation of India’s largest and most profitable travel services enterprise,” said Ebix chairman, president, and leader government Robin Raina.
Ebix stated they provide a fee of $7 in line with the proportion, representing a top rate of 84% of Yatra’s last charge on Friday. It expects the deal to add 25 to 30 cents for the mixed employer’s shareholders. The offer also values Yatra at around a 50% premium to its valuation at the time of its reverse merger to listing on the Nasdaq in 2016.
Ebix stated it’d lessen its offer if it did not receive a fantastic reaction from Yatra’s board. It also reserved the right to withdraw the offer if Yatra declined to allow the company to proceed with due diligence by March 18.
Yatra has not issued a statement concerning the offer. Its stocks rose 15% after the news, even though Ebix shares had been up marginally on Monday.
Atlanta-primarily based Ebix provides software and e-commerce offerings for the insurance, economic, and healthcare industries. Its unit EbixCash acquired Mumbai-based Mercury Travels and Delhi-based Leisure Corp last year to create a journey department centered on luxury, events, and sports activities-related tourists.
Ebix had, in October 2017, received online-to-offline tour company Via for $75 million.
