Nasdaq listed India’s second largest online travel agency, Yatra will review the proposal of
acquisition presented by Ebix. If approved, it will mark India’s largest consolidation in the online travel portfolio after more than 2 years.
The last largest acquisition in the same niche was when MakeMyTrip acquired competitor Golbibo. Ebix will become a formidable competitor after this acquisition. After Via.com, Ebix has acquired other travel agencies like Mercury, Leisure Corp, Pearl International
Tours & Travel, and Lawson Travel & Tours.
An Ebix source said, “At a macro level, this is part of Ebix’s early strategy of becoming a consolidator in various markets. The company first created dominance in money transfer market with the acquisition of digital payments company ItzCash in 2017. Then it dominated forex market as well with acquisition of Essel Forex and Weizmann Forex and acquired SL forex”.
The source added, “For Ebix it makes sense, as part of its consolidation strategy, to make a bid for a hostile acquisition of Yatra considering the latter is a Nasdaq-listed company. Hence, Ebix can make an offer on equity swap and also it can help Ebix raise further debt to continue its acquisitions”. Ebix letter revealed its interest of purchasing 100% outstanding shares of Yatra Online for $7 on debt free basis.
In 2016, Yatra had also undergone a reverse merger deal with Terrapin 3 Acquisition Corp to get listed on Nasdaq.