US-based software firm Ebix has made an unsolicited bid for India online travel platform Yatra.
It has lodged a ‘generous’ bid of about $340 million which is a premium of more than 80% on its share closing price as of last Friday.
Yatra’s share price surged by a third as a result.
Ebix wants to take 100% of the outstanding stock for $7 per share on a debt-free basis.
"Ebix intends to merge Yatra Online in its Indian EbixCash subsidiary setup. Ebix’s offer is subject to due diligence and customary regulatory and other closing conditions," Ebix said in a statement.
The Ebix filing says Yatra has about 800 corporate clients
"Our travel platforms are generating annual gross sales of about $2.5 billion, and Yatra could add another $1 billion more."
The deal would take Atlanta headquartered Ebix’s India acquisitions pass the $1 billion mark.
It acquired Mumbai-based Mercury Travels and Delhi-based Leisure Corp last year after buying travel agency group Via for $75 million in 2017.
"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," said Ebix president and CEO, Robin Raina.
