Ebix, an international supplier of on-demand software and e-commerce services to the insurance, financial, healthcare and e-learning industries, said on Wednesday it is acquiring online travel platform Yatra.com at an enterprise value of around $338 million.

In their filings with Nasdaq stock exchange, both the companies said they have entered into a definitive agreement under which Ebix will acquire Yatra and the deal will be structured as a merger.

“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,” said Ebix Chairman, President and CEO Robin Raina.

To retain brand

Post deal, Yatra will become part of the EbixCash travel portfolio alongside Via and Mercury, and will continue to serve customers under the Yatra brand.

“Becoming a part of Ebix’s EbixCash travel portfolio will enable us to continue on that path. As part of a larger diversified organisation with the necessary scale and resources to be a leader in today’s dynamic travel marketplace, we will provide more options and an enhanced experience for our joint customers and will be an even stronger partner to the airline, hotel, car rental and other businesses we work with,” said Dhruv Shringi, co-founder and CEO of Yatra.

Under the deal, the holder of each ordinary share of Yatra will be entitled to receive 0.005 shares of a new class of preferred stock of Ebix.

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.

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.

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