Online travel operator, Yatra Online Inc has acquired corporate travel service provider Air Travel Bureau (ATB) in an estimated cash-and debt deal of $ 22.5-27.5 million.
The acquisition has been made through Yatra’s online subsidiary Yatra Online Pvt Ltd and the company will pay about $8 million at the first closing, expected to take place in mid-August, acquiring the majority of ATB shares in the process.
“With this acquisition, we believe that we are now the largest corporate travel services in India by gross bookings,” said Dhruv Shringi, Chief Executive at Yatra Online Inc.
“This acquisition will allow us to deliver best-in-class experiences to an even wider set of travellers, through our web and mobile platforms, and enhance our reach to cross-sell our product suite, including hotels, to this new customer base,” he added.
The balance of the payment will be made during the second closing that is expected to occur in the second quarter of 2018. The transaction has been financed through a mix of debt and cash in the bank.
Yatra expects a net revenue contribution of between 8% and 10% from ATB for 2017-18.
“We are excited for ATB to join the Yatra family and for our teams to work together to further enhance the offerings we provide to our customers and partners by leveraging Yatra’s technology platform and large hotel network,” said Sunil Narain, Chairman and Chief Executive at ATB.