Ebix to buy Yatra

The US-based Ebix group announced the acquisition of leading domestic travel portal Yatra for an enterprise valuation of $337.8 million (over Rs.2,300 crore).

Both the parties have signed a definitive agreement for the deal which would create the country’s largest travel services platform. It is the largest acquisition by Ebix Group in the country so far.

Ebix, in a statement, said that each ordinary share of Yatra will be entitled to receive 0.005 shares of a new class of preferred stock of Ebix. Further, each share of these preferred stock of Ebix will be convertible into 20 shares of common stock of the US firm.

Ebix will issue 2,43,747 convertible preferred shares, which, in turn, will be convertible into 48,74,931 shares of Ebix’s common stock, the statement said.

The company paid a 32% premium compared to Yatra’s closing price on March 8, when Ebix had offered to acquire Yatra.

Ebix, which is on an acquisition spree, has two global travel portfolios in the form of Via and Mercury.

In April last year, Ebix had acquired the forex card business of Centrum Direct for about Rs.1,200 crore.

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