The U.S.-based software company Ebix, Inc., has reportedly put forth an offer to purchase the popular Indian travel services firm Yatra Online Inc. As per credible reports, the international on-demand software & e-commerce service supplier plans to acquire the latter for USD 336 million, in a cash-and-stock deal. Apparently, the software firm will be adding the travel services company to its portfolio of Indian travel companies.
As per sources familiar with the knowledge of the matter, Ebix’s offer price is valued at USD 7 per share – which incidentally represents a premium of 84% to the Friday close of the Indian company.
It has been speculated that the Atlanta-based supplier for the insurance, healthcare, and financial sectors aims to incorporate Yatra Online in the company’s Indian EbixCash subsidiary set up. The U.S. firm anticipates that deal would add between 25 cents to 30 cents for the stakeholders of the combined company.
As per an official press release by Ebix, the company plans to pay for the Indian firm at its discretion – either in cash or with the issuance of tradeable Ebix stock. In the event that Ebix chooses the latter, Ebix stock will be carrying a minimum collar value of USD 59 per Ebix share – that is calculated by dividing the overall payable acquisition capital to Yatra’s shareholders, by Ebix stock’s 10-day average price, preceding the closing date
Reliable reports affirm Ebix to have also claimed that it may consider reducing its offer in case it does not receive a confirmatory response from Yatra Online’s board. Apparently, the company has also reserved the right to take back the offer in the event that the Indian company declines to allow Ebix to proceed further with due diligence by March 18.
For the record, post the announcement, Ebix shares rose marginally, while Yatra’s shares were up 15%.