The US-based supplier of on-demand software and e-commerce services to the insurance, healthcare, financial and e-learning industries, Ebix has acquired Yatra Online, for an enterprise value of INR 2,323.6 crore (USD 337.8 million) in an all-stock deal. The two companies have entered into a definitive agreement under which Ebix will acquire Yatra via merger.

The transaction will create India’s largest and most profitable travel services company. However, Yatra will continue to operate independently and will also retain its brand and status in India.

“This deal provides our shareholders with the opportunity to participate in the significant upside potential of one of the fastest-growing multinational on-demand software and e-commerce services companies in the world,” said Dhruv Shringi, co-founder and CEO of Yatra Online.

The transaction has been approved unanimously by each of Ebix’s and Yatra’s boards of directors, and it is expected to close by the fourth quarter of 2019. Under the terms of the merger, each ordinary share of Yatra will be entitled to receive 0.005 shares of a new class of preferred stock of Ebix (Ebix convertible preferred stock).

“Combining Yatra’s loyal customer base with Ebix’s complementary businesses.”

Following the completion of the transaction, Yatra will become a part of Ebix’s EbixCash travel portfolio alongside Via and Mercury and will continue to serve customers under the Yatra brand.

“We are optimistic that combining Yatra’s loyal customer base, comprehensive service offering and multi-channel platform with Ebix’s complementary Via and Mercury businesses, will create a leading online travel platform and India’s largest corporate travel platform that will capture growth opportunities and deliver enhanced value to shareholders,” Shringi added.

“The acquisition of Yatra would lend itself to significant synergies and the emergence of EbixCash as India’s largest and most profitable travel services company,” Robin Raina, chairman, president and CEO of Ebix said. This deal is Ebix’s biggest acquisition to date in India.