Ebix acquires Yatra in $337 Mn all stock deal

US-based software firm Ebix has finally acquired Indian online travel booking company Yatra through a merger deal at an enterprise value of $337.8 million in an all-stock deal.

The talks of the deal were cropped up in March when Yatra had said that it was reviewing Ebix's proposal to acquire all outstanding shares of the company with the help of Citi Group Global Markets Inc. as the financial advisor and Goodwin Procter LLP as legal advisors.

Yatra clarified that after adjustment for indebtedness, working capital, warrants to be converted and minimum cash requirement, the deal implies a net equity value of $239 million.

The acquisition will help Ebix to strengthen its position in India’s hotel and flight ticketing businesses. The Robin Raina-led firm leads in on-demand software and e-commerce services to industries like finance, insurance, healthcare.

As a part of the deal, Yatra will become part of Ebix’s EbixCash travel portfolio alongside Via and Mercury and will continue to serve customers under the Yatra brand. It means Yatra will continue to run independently and will retain its brand and status in India.

Yatra is the biggest acquisition deal for Ebix in India, that had entered the country after acquiring 80% stake in ItzCash for Rs 800 crore in May 2017. Since then it acquired two more startups in traveltech space - Via.com and Zillious.

The Itzcash deal gave exits to early investors Matrix, Intel Capital and Lightspeed Venture Partners. Essel Group owns the remaining 20 per cent stake in the company.

Besides, Ebix' Indian subsidiary EbixCash also bought Mumbai-based Mercury Travels and Delhi-based Leisure Corp in 2018 with an aim to create a travel division focused on luxury, events and sports-related offering for travelers.

For Yatra, it is no less than achieving a milestone it would have ever thought of. On the other hand, Ebix aims to make its Indian subsidiary EbixCash as one of the largest enterprise financial exchange in the country and eventually the most profitable travel services company.