March 18: Ebix, a US-based software company, is in plans to buy Yatra Online Inc, the second largest online travel company in India. The US company is planning a bid of $336 million, which translates to Rs 2,347 crore.
Ebix announced that it will pay in cash or issue its stock to buy Yatra Online, whichever is convenient for the latter. When the deal is closed, the stock can be converted at its 10-day average price or the company will be given $59 per share.
Talking about the latest pact Ebix stated that if a company is among the listed ones that are always on the block. The company had to provide a persuasive offer, keeping in mind the interests of the company’s shareholders. An additional earning per share of 25-to-30 cents will be offered to Ebix shareholder if the deal is successful. Based on the 12-month and 24-month average prices of the Yatra stock, and the company’s future path to productivity, the deal is a realistic one.
The company is said to have given an offer to Ebix with a deadline of one week. The company has the right to reduce the offer at its will if Yatra does not respond within the deadline.
In fiscal 2018, Yatra earned revenue of $188 million with a net loss of $62 million. Within the 6 months of acquisition, Robin Raina believes that the company will generate revenues greater than $150 million. This will, in turn, bring extra EPS for Ebix shareholders.