Global software integration platform that generally masters in the provision of on-demand software and e-commerce services to industries like finance, insurance, healthcare – Ebix, has offered Yatra.com a “generous” acquisition deal.
Yatra has confirmed that it is reviewing the offer with the help of Citi Group Global Markets Inc. as the financial advisor and Goodwin Procter LLP as legal advisors.
In this lengthy offer sent across by Ebix Inc., The US software company has set a $7 price for each outstanding diluted share of Yatra. Considering that there are 48 million shares in that category the deal is expected to be priced at $336 million.
Ebix evaluates the business on the cash flow and earnings per share (EPS) metrics and provides a detailed rationale behind the offer. Firstly, it believes that post acquisition Yatra will generate $150 million net revenue for the company and within six months it would be generating a 30 per cent plus operating margin.