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Ebix acquires Yatra for an enterprise value of US$ 337.8 million

IBEF:  July 18, 2019

Ebix Inc., which is a supplier of on-demand software and e-commerce services acquired online travel portal Yatra Online Inc., for an enterprise value of US$ 337.8 million, in an all-stock transaction.

This is beneficial fit for both companies, with Ebix’s expertise in the B2B (business-to-business) segment and Yatra’s leadership in corporate travel bookings. This deal is expected to help Yatra enter more than 60 countries that it is present in.

Though, Yatra will remain to be independently run and will maintain its brand and status in India.

Ebix has a business of making software for the insurance, financial and healthcare industries. Its Indian branch, EbixCash, acquired Mumbai-based Mercury Travels and Delhi-based Leisure Corp. previous year. This was with an intention to create a travel division focused on events- and sports-related travellers.
Ebix first proposed to buy Yatra in March for US$ 337 million, in cash or by stock.

The acquisition of Yatra would provide the Ebix to significant interactions and the development of EbixCash as India’s largest and most gainful travel services company, besides being the largest enterprise financial exchange in the country.

The agreement marks Ebix’s major acquirement till date in India. Ebix had come into India with the purchase of an 80 per cent stake in ItzCash for Rs 800 crore from Essel Group and other shareholders in May 2017. Ever since then, the company has taken over a dozen companies beyond sectors, such as remittance, travel, foreign exchange and education.

Ebix has also purchased a bunch of companies in the travel space. In November 2017, it had expended around US$ 75 million to develop online travel portal Via.com. In the same month, it had acquired Mercury Travels and Leisure Corp. for US$ 14.2 million.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.