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Last Updated : Jul 18, 2019 05:15 PM IST | Source: Moneycontrol.com

Ebix set to snap up Yatra for Rs 2,314 crore

In March, Yatra had said that it was reviewing Ebix's proposal to acquire all outstanding shares of the company.

Three months after sharing a proposal, Ebix Inc is finally acquiring online travel service provider Yatra for an enterprise value of around Rs 2,314 crore, according to people privy to the development.

Given the debt Yatra holds, the eventual price of the deal would be in the range of Rs 1,653-1,722 crore.

The announcement is expected to happen later today.

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In March, Yatra had said that it was reviewing Ebix's proposal to acquire all outstanding shares of the company.

Also Read: Ebix signs agreement to acquire Yatra

Citi Group Global Markets Inc was the financial advisor and Goodwin Procter LLP was the legal counsel.

Ebix had proposed to acquire Yatra Online for about Rs 482 per share on debt free basis.

Also Read | Meet Robin Raina: Ebix boss who dons many a hat 

With this deal, Ebix aims to become an end-to-end enterprise financial and insurance services player.

It claims that the merged entity would become one of India's largest and most profitable end-to-end travel industry player in the insurance services industry, providing distribution, travel insurance, forex and visa services, among other things all under one roof.

According to Ebix, Yatra can generate revenues upwards of Rs 1,033 crore per year with over 30 percent operating margins on a post-closing basis, within 6 months of the acquisition by Ebix.

After MakeMyTrip acquired rival GoIbibo, Yatra was facing a stiff challenge from the combine.

Yatra and Ebix did not immediately respond to media queries.

($1= Rs 68.88)
First Published on Jul 17, 2019 04:14 pm
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