Yatra Online has changed hands. The travel portal has since been taken over by a US firm Ebix, which is more into software services. The value of the transaction is placed at Rs 1,645 crore ($239 million) and it is an all-stock deal. The enterprise level valuation is being placed at 337.8 million. This included Yatra’s outstanding warrants, indebtedness etc.
Yatra will continue to offer its travel related services online under the new management. Ebix has a travel portfolio EbixCash and Yatra will now become part of this vertical functioning along side two other brands, Via and Mercury, operated by Ebix.
The deal involves Ebix issuing 243,747 convertible preferred stock to the shareholders of Yatra which can be converted into 4,874,931 shares of Ebix common stock. Based on the average price of Ebix shares of $49.05, each Yatra ordinary share would be valued at $4.90, it is claimed.
Robin Raina, the Chairman of Ebix has issued a statement that they would be open to more such acquisitions and they are not focused on any specific sector in the industry. In fact, they are even looking at stressed enterprises which are with the National Company Law Tribunal (NCLT) for their debt restructuring/resolution proceedings.
That opens up the entire canvas for them to make an entry into. Entering into entirely new areas of businesses especially if the company is not doing well and is under debts is not everyone’s cup of tea. Possibly Ebix believes it has the capability and the financial muscle to nurse them back to profits.
That may also come as music to the ears of some of the lenders to these companies which are queuing up at NCLT, and the government too could fund the offer from Ebix if their takeover results in recovery of dues to the public sector banks.