US software firm Ebix on Monday said it has offered to acquire 100 per cent of the outstanding stock of Yatra Online for $7 per share on a debt-free basis. According to reports, this should come up to $336 million, or Rs 2,350 crore.
Yatra Online, Inc is the parent company of Yatra Online Pvt Ltd which is based in Gurugram, India and is India's leading Corporate Travel services provider with over 800 corporate customers and one of India's leading online travel companies and operates the website Yatra.com.
"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 offer expects any outstanding warrants to be surrendered or bought and retired before closing by Yatra Online; failing which Ebix would pay for the prevailing market price of the warrants at the time of closing, while adjusting its overall $7 share price payable to Yatra Online shareholders downwards at the time of closing, by the quantum of money paid by Ebix for retiring those warrants," it said.
Ebix also announced that it reserves the right to reduce its offer at its discretion if it does not receive a positive engagement response from the Yatra Online Board in a timely manner or if any subsequent steps are taken by the company that could have an adverse impact on its future value.
"Lastly, Ebix reserves the right to withdraw this offer, if the Yatra Board of Directors declines to allow Ebix to proceed with due diligence by 5 p.m EST on 18th March 2019," it said.
Ebix is a software firm headquartered out of the US, which offers software and provides e-commerce services for healthcare, finance, insurance, among others. It has, in the past, made several acquisitions in the travel space where it acquired Mumbai-based Mercury Travels and Delhi-based Leisure Corp last year and in October 2017 acquired online-to-offline travel agency Via for $75 million.