India-based corporate travel services provider Yatra Online has confirmed that it is considering a proposal from US insurance software provider Ebix to acquire all outstanding shares in the company.
Ebix has offered US$7 per share in Yatra, which launched in 2006, bringing the potential transaction to $336 million.
The firm says its interest in the platform stems from its model of integrating acquired products and services and its belief that Yatra could generate revenues of up to $150 million a year.
Chairman and CEO Robin Raina commented: “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 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.”
Yatra says its board of directors will review and consider the bid under the guidance of the company’s legal and financial advisors, Goodwin Procter LLP and Citi Group Global Markets Inc, respectively.
Ebix has given Yatra until 1700 on 18 March to allow it to proceed with due diligence.