"We are excited by the cross-selling opportunities that this combination provides us," said Robin Raina, Ebix chief.
Ending months of speculation, Ebix on July 17 announced that it has entered into definitive agreement under which Ebix will acquire Yatra Online through a merger deal.
Moneycontrol was the first to report that that Ebix was acquiring Yatra for Rs 2,314 crore.
In a telephonic conversation with 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 EbixCash 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 EbixCash IPO offering," said Raina in a statement to the media.
Dhruv Shringi, co-founder and CEO of Yatra Online, expressed his delight after the deal was announced."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.Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.