In view to expanding its footprint in the travel business, Atlanta-based US software company Ebix Inc., on Wednesday, is set to acquire Indian online travel portal Yatra Online Inc. for $336 million or Rs.2314 crores, in an all-stock deal. Deducting the debt Yatra holds, the final price of the deal is expected to be in the range of $239 million or Rs.1642 crores. While the deal is Ebix’s biggest acquisition till date in India, Yatra will continue to be independently run retaining its individual brand in the country.
Speaking about the acquisition, Ebix President and CEO, Robin Raina has shared his aim at Yatra's acquisition.
"Acquisition of Yatra makes us leaders in the travel industry with B2B expertise and the biggest financial lenders of the country. The synergy between the company is fantastic and we achieve at creating India's first financial MNC based in India," he said.
Investing in India, he said that Ebix planned to make India's it's intellectual property base while growing globally.
"Ebix has a history of 80 quarters of sequential growth, so we are very profitable, coming not at the cost growth. We have been one of the fastest-growing companies five times in the last decade. We have a plan which will unfold in the next 6-8 months which will generate quick profits for our shareholders, investing $1.1 billion in India in the next two years," he said, adding that Ebix Cash also plans to offer an IPO in the second quarter of 2020 to raise funds.
Speaking about his philanthropic activities, he shared his work in the underprivileged sector- educating school children, building homes for slum dwellers and create malls which provide free stuff for underprivileged people named a 'wealth exchange' initiative with Seva Bharati. Raina also shared his other ventures like writing books, fashion shows, film production saying that they completed him.
According to its official site, Ebix is a leading international supplier of on-demand infrastructure exchanges to the insurance, financial, and healthcare industries. It also provides Software-as-a-Service ("SaaS") enterprise solutions in the front-end and back-end systems, outsourced administrative and risk compliance.
Its Indian subsidiary - Ebix Cash which started as India' s first and largest non-bank entity to offer Prepaid Cash cards is now one of the leading holistic payments’ solutions company with services providing remittances, insurance, capital loans and its own budget travel offers.
Ebix which is listed in NASDAQ has an Indian subsidiary - Ebix Cash which had bought Mercury Travels and Delhi-based Leisure Corp last year. Following this acquisition aimed at creating its own travel division, in March 2019, Ebix had offered to buy Yatra for $337 million, in cash or by stock.
Apart from Yatra, Ebix currently has an 80% stake in ItzCash after acquiring it from Essel Group in March 2017 and had acquired in August 2018, Centrum Group’s forex business Centrum Direct Ltd. for Rs. 1200 crores. This made the company gain a firm foothold in sectors ranging from remittance, travel, foreign exchange and education.