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Ebix, international supplier of software and e-commerce services, has bought online travel platform Yatra for Rs 2,323.6 crore.  The transaction will close by the fourth quarter of this year.  Yatra will continue to function independently after the completion of the deal.

According to the filing with Nasdaq stock exchange, the deal is structured as a merger under a mutual agreement between the companies where Ebix will be acquiring all the ordinary shares of Yatra. The filing also stated that after the completion of the transactions; Yatra will be a part of the EbixCash travel group alongside Via and Mercury. It will also retain its working brand name after the acquisition.

The online booking platform

As per the deal, each Yatra shareholder owning ordinary shares will receive 0.005 shares of preferred stocks in Ebix. On the other hand, the preferred stock received by Ebix from individual Yatra ordinary shares can be converted to 20 shares of common stock in the company.

Robin Raina, Chairman, President and CEO of Ebix, said that the acquisition will help the online portal gain exposure to synergies and also will help EbixCash become one of the most profitable travel services company.

Yatra co-founder and CEO, Dhruv Shringi, told Economic Times that he feels positive about the acquisition as the Ebix travel portfolio will diversify its work culture and provide them better resources to become the leader in the travel marketplace. He also added that the company will provide more options and enhance the experience for its customers by collaborating with airlines, hotel, car rental and other branches of their businesses.