Nasdaq-listed software firm Ebix has offered to acquire New York-based Yatra Online, the parent company of Gurugram-based Yatra Online, for $336 million in cash or stock. Post deal, it intends to merge Yatra Online into its Indian subsidiary, EbixCash.

Ebix’s offer is subject to due diligence and customary regulatory and other closing conditions, the company said in a statement.

The offer, based on about 48 million Yatra Online diluted shares outstanding, represents an 84 per cent premium to Yatra Online’s closing share price of $3.80 as of March 8. Yatra Online stock has traded between $3.70 to $8.16 in the last 12 months.

"We believe that Yatra Online’s products and services are complementary to EbixCash’s travel portfolio of Via and Mercury, and a combination of the two companies would lend itself to significant synergies and the creation of the India’s largest and most profitable travel services company. We see substantial synergies, economies of scale and expanded growth potential for the combined business. Our interest in making an offer for Yatra Online is also borne out of our firm belief that a combination of the two companies could be substantially and immediately accretive to Ebix's EPS," Ebix Chairman, President and CEO Robin Raina said.

The offer contemplates the assumption of all Yatra Online receivables, cash and restricted cash worth at least $25 million at the time of closing and other assets, with all liabilities being paid for by Yatra Online concurrent to the closing of the transaction. The offer expects any outstanding warrants to be surrendered or bought and retired before closing by Yatra Online.

Ebix also said it reserves the right to reduce its offer at its discretion if it does not receive a positive engagement response from Yatra Online’s board in a timely manner.

Ebix believes that Yatra Online can generate revenues upwards of $150 million per year with more than 30 per cent operating margins on a post-closing basis, within 6 months of the acquisition by Ebix. The company expects that the combination of the two companies can generate between 25 and 30 cents accretion for the shareholders of the combined Ebix company.

Earlier in January, in a spate of acquisitions, Ebix acquired four Indian companies, to position it as the largest financial exchange in India and strengthen its travel division. The company’s Indian subsidiary EbixCash World Money acquired two financial firms, Essel Forex and Weizmann Forex, for a total of about $57 million (about ₹400 crore) and two travel brands for an undisclosed sum.

Ebix, a global supplier of on-demand software and e-commerce services, will strengthen its position as the largest financial exchange in India, besides emerging a leader in the inward remittance, outward remittance and foreign exchange markets.

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