Yatra Online Limited has announced a definitive agreement to acquire Globe All India Services Limited (Globe Travels) for INR 128 Crores.
The acquisition, which is set to be funded through earmarked IPO funds of INR 150 Crores, is expected to have an immediate positive impact on Yatra’s financials.
The acquisition will enhance Yatra’s market position significantly by increasing its annual Gross Merchandise Value (GMV) by INR 783 Crores, pushing the company’s total B2B GMV to over 50% of its total GMV.
The deal is also anticipated to be immediately accretive to Yatra’s earnings.
Strategic Benefits and Synergies
The integration of Globe Travels will provide Yatra with an expanded corporate customer base, adding 360 new clients to Yatra’s existing 850, for a combined total of over 1200 corporate customers.
Notable Globe Travels clients include leading firms in the Cement and Steel sectors, which will further strengthen Yatra’s market presence.
Key benefits of the acquisition include:
- Expanded Market Share: Yatra’s corporate customer base will grow by 40%, enhancing its negotiating power with suppliers.
- Cross-Selling Opportunities: The acquisition opens up opportunities to cross-sell Yatra’s range of services including hotels, expense management, and travel solutions due to minimal overlap in the customer base.
- Synergistic Benefits: The deal will allow for the integration of Yatra’s Corporate Self Booking Platform with Globe Travels, leading to increased efficiencies, reduced costs for clients, and potential margin expansion.
- MICE Expertise: The acquisition will bolster Yatra’s capabilities in Meetings, Incentives, Conferences, and Exhibitions (MICE), positioning the combined entity as a leading player in the MICE sector by business volume.
Financial Metrics
The deal is set to accelerate Yatra’s shift towards B2B services and enhance its financial performance.
With the addition of Globe Travels’ annual GMV of INR 783 crore, Yatra’s total B2B GMV will surpass 50% of its overall GMV.
The acquisition aligns with Yatra’s strategic goals and is expected to generate significant value for shareholders.
This move marks a significant step in Yatra Online Limited’s growth strategy, reinforcing its position as a major player in the corporate travel and MICE sectors.
