Nasdaq-listed travel agency Yatra Online has agreed to acquire corporate travel services provider Globe Travels from forging company Ramkrishna Forgings Ltd for a cash consideration of Rs 128 crore ($15 million as per current rates).
It will make the payment for the acquisition through its domestic subsidiary Yatra Online Ltd that is listed on the Indian exchanges. Yatra provides information, pricing, availability and booking facility for air travel, hotel bookings, holiday packages, among other things.
The deal value is net of debt of Globe's All India Services, the companies said in exchange filings. Globe Travels, registered in Kolkata, reported a turnover of Rs 250 crore in the last financial year, up about 17% over the previous year.
According to Yatra’s disclosure, the company had an Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin of over 20%. That would come out to be around Rs 50 crore absolute EBITDA for the last financial year.
Specifically, Yatra gets access to Globe Travels’ nearly 360 corporate customers and annual gross bookings of about $90 million. It has about 850 corporate customers in India currently.
The deal will help Yatra gain access to new geographies, increase market penetration and add new capabilities to its existing line of business, Yatra said.
“This acquisition aligns with our strategy to deepen presence in key verticals and markets while further strengthening our corporate travel and MICE (meetings, incentives, conferences and exhibitions) capabilities,” said Dhruv Shringi, co-founder and CEO of Yatra.
“Globe Travels’ expertise in corporate travel and MICE and outstanding service record complement Yatra's existing offerings, allowing us to provide a more comprehensive and tailored travel experience to our clients across India," he added.
Meanwhile, the deal helps Ramakrishna to divest from the hospitality business and focus on its core segments particularly in forged, machined and fabricated products for diverse sectors such as automotive, railways, oil & gas and power.
