Indian travel agency Yatra Online, Inc has entered into a merger agreement with Terrapin 3 Acquisition Corp (TRTL), a Nasdaq-listed special purpose acquisition firm, the two companies said in a statement. The transaction values Yatra at an enterprise value of $218 million (Rs 1,458 crore).
Yatra said that it intends to be listed on the U.S. stock exchange Nasdaq under the symbol ‘YTRA’. It would be able to do this via a reverse merger, a way for private companies to go public, typically through a cost-efficient and expedient process. In a typical reverse merger, an active private company takes control and merges with a dormant public firm or a shell company.
TRTL, a shell company, is focused on effecting a merger, acquisition, or similar business combination. The combined company will continue to be led by Yatra’s management team under the leadership of chief executive and co-founder Dhruv Shringi.
“We are excited to partner with TRTL in a transaction that we believe will enable Yatra to continue its growth as a new public company,” said Mr. Shringi in a statement. A chartered accountant, Mr. Shringi co-founded the firm in 2006 along with Manish Amin and Sabina Chopra who were his colleagues at European online travel agency Ebookers.
4 million users
Yatra, which is backed by marquee investors such as Norwest Venture Partners, Intel Capital and IDG Ventures India, has over four million customers. It said that the transaction gave the firm substantial additional resources to support growth and improve online and mobile platforms. This included further expanding its network of domestic and international partnership with hotels, airlines and tour package promoters.
Yatra customers booked more than 2.8 million air travel reservations and hotel stays with total transaction value worth over $900 million during the fiscal year ended March 2016, an increase of 25 percent from the prior year, according to the firm.