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Ebix acquires Yatra Online for $239m in all-stock deal
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SME Times News Bureau | 18 Jul, 2019
US software firm Ebix said on Wednesday that it has acquired online
travel portal Yatra Online Inc via merger in an all stock deal for a net
equity value of $239 million.
In connection with the merger,
each ordinary share of Yatra Online will be entitled to receive 0.005
shares of a new class of preferred stock of Ebix (Ebix Convertible
Preferred Stock). Each share of Ebix Convertible Preferred Stock
received for each Yatra ordinary share will, in turn, be convertible
into 20 shares of common stock of Ebix.
Based on the trailing
15-day volume weighted average price (VWAP) of Ebix common stock of
$49.05 per share, each Yatra ordinary share convertible into Ebix common
stock would be valued, on an as-converted basis, at $4.90 per share,
representing an approximately 32 per cent premium to Yatra's closing
share price as on March 8, 2019, the last trading day prior to the
public announcement of Ebix's offer to acquire Yatra.
Assuming a
value of $4.90 per Yatra ordinary share, the transaction implies an
enterprise value of $337.8 million at the Ebix collar price of $59 per
share and post adjustment for indebtedness, working capital, warrants to
be converted and minimum cash requirement, a net equity value of $239
million.
Ebix will be issuing 243,747 convertible preferred
stocks, which in turn will be convertible into 4,874,931 shares of Ebix
common stock.
Following the completion 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.
Yatra
Online Inc is the parent company of Yatra Online Private Limited which
is based in Gurugram. It is one of India's leading corporate travel
services provider with over 800 corporate customers. It is also one of
India's leading online travel companies which operates the website
Yatra.com.
Ebix is a leading international supplier of on-demand
software and e-commerce services to the insurance, financial, healthcare
and e-learning industries.
Commenting on the deal, Ebix
Chairman, President and CEO Robin Raina said: "The acquisition of Yatra
would lend itself to significant synergies and the emergence of EbixCash
as India's largest and most profitable travel services company, besides
being the largest enterprise financial exchange in the country."
"We
are pleased to announce this agreement with Ebix, which provides our
shareholders with the opportunity to participate in the significant
upside potential of one of the fastest growing multinational on-demand
software and e-commerce services companies in the world," said Dhruv
Shringi, co-founder and CEO of Yatra Online.
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