Software company Ebix Inc said on Monday that 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 said in a declaration that it intends to merge Yatra Online, which operates journey portal Yatra.Com, with its Indian EbixCash subsidiary, which gives remittance services.
“We accept as true with that Yatra Online’s services, and products are complementary to EbixCash’s tour portfolio of Via and Mercury, and a combination of the 2 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 the provide fee of $7 in line with proportion represented a top rate of 84% to Yatra’s last charge on Friday. It expects the deal to add among 25 to 30 cents for the shareholders of the mixed employer. The offer also values Yatra at around 50% premium to its valuation on the time of its reverse-merger to listing on the Nasdaq in 2016.
Ebix stated it’d lessen its offer if it does now not receive a fantastic reaction from Yatra’s board. It additionally reserved the proper to withdraw the offer if Yatra declines to allow the company to proceed with due diligence by way of March 18.
Yatra has now not issued any statement concerning the offer. Its stocks rose 15% after the news, even as Ebix shares had been up marginally on Monday.
Atlanta-primarily based Ebix gives software and offers e-commerce offerings for the coverage, economic, healthcare industries. Its unit EbixCash had obtained Mumbai-based Mercury Travels and Delhi-based Leisure Corp final year with a purpose 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.