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Ebix acquires

The travel services provider will become part of Ebix’s EbixCash travel portfolio and will continue to serve customers under the Yatra brand.

Ebix – a leading international supplier of On-Demand software and e-commerce services to the insurance, financial, healthcare and e-learning industries - and travel services provider Yatra Online have entered into a definitive agreement under which Ebix will acquire Yatra via merger.

In connection with the merger, each ordinary share of Yatra (Yatra Ordinary Share) will be entitled to receive 0.005 shares of a new class of preferred stock of Ebix (Ebix Convertible Preferred Stock). 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 (Ebix Common Stock).

Based on the trailing 15-day volume weighted average price (VWAP) of Ebix Common Stock of $49.05 per share, each Yatra Ordinary Share convertible into Ebix Common Stock would be valued, on an as-converted basis, at $4.90 per share, representing an approximately 32 per cent premium to Yatra’s closing share price on March 8, 2019, the last trading day prior to the public announcement of Ebix’s offer to acquire Yatra. Assuming a value of $4.90 per Yatra Ordinary Share, the transaction implies an enterprise value of $337.8mil 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.

Ebix will be issuing 243,747 convertible preferred stock, which in turn will be convertible into 4,874,931 shares of Ebix common stock. Following the completion of the transaction, Yatra will become part of Ebix’s EbixCash travel portfolio alongside Via and Mercury and will continue to serve customers under the Yatra brand.

Commenting on the occasion Ebix Chairman, President and CEO Robin Raina, said, "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... We are excited by the cross-selling opportunities that this combination provides us, while further strengthening our future EbixCash IPO offering.”

As a condition to the closing of the transaction, Yatra will offer newly-issued Yatra Ordinary Shares in exchange for 50 per cent of the outstanding warrants to purchase Yatra Ordinary Shares (Yatra Warrants).

“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.

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