Software and e-commerce company, Ebix, on July 17, announced that it has entered into definitive agreement under which it will acquire Yatra Online through a merger deal. It has been reported earlier that that Ebix was acquiring Yatra for Rs 2,314 crore.
According to a report by Moneycontrol, Ebix chief Robin Raina said that his company is in the process of building an end-to-end financial enterprise. "For airlines, cabs, hotels, we want to cater to every financial needs of consumers. Dhruv Shringi and Manish will be key people in the organisation," he told Moneycontrol.
Each ordinary share of Yatra will be entitled to receive 0.005 shares of a new class of preferred stock of Ebi. 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.
"The acquisition of Yatra would lend itself to significant synergies and the emergence of Ebix Cash as India’s largest and most profitable travel services company, besides being the largest enterprise financial exchange in the country. Over the last few months, we have evolved a detailed synergistic plan, that once fully executed can provide between 40 to 75 cents of accretion to the Ebix non-GAAP EPS. We are excited by the cross-selling opportunities that this combination provides us, while further strengthening our future Ebix Cash IPO offering," said Raina in a statement to the media.