Indian online travel and e-commerce network Via.com has been acquired by US-based on-demand software supplier Ebix Inc.
The deal means Ebix’s distribution network will expand to more than 2,24,000 outlets across India and South East Asia and create significant cross-selling opportunities for Ebix’s EbixCash Financial Exchange portfolio.
Under the terms of the agreement, Via was valued at approximately $74.9 million and the deal is likely to be completed within the next few days.
Via has reported a compound annual growth rate of 45% over the alst three years and has more than 110,000 distribution outlets and 8,000 corporate clients. It processes more than 24.5 million transactions every year.
Its platform offers mobile phone recharges, money transfer, insurance, prepaid gift cards and retail products, domestic and international air, hotels, holidays, rail, bus and car rental bookings.
The Via distribution network encompasses over 85,000 agents in India, 14,700 agents in Indonesia, 9,900 agents in the Philippines, 600 agents in Singapore and 350 agents in UAE and Oman
Ebix intends to consolidate this acquisition into its Financial Exchange – EbixCash and strengthen its position in India’s financial exchange market in India.
Vani Kola, managing director at Kalaari Capital said: “Ebix is a logical home for Via, as it complements EbixCash’s financial exchange portfolio perfectly, opening up tremendous cross-selling opportunities on both sides. We are excited about the possibilities this offers for both our customers and employees. Ebix’s financial strength, expertise, focus and commitment to the Fintech sector were key in our decision. We believe that the two sides can leverage each other’s abilities to take a market leadership role in the South East Asian markets.”
Ebix chairman, president and CEO Robin Raina added: “I believe that the addition of Via’s integrated platform into our rapidly growing EbixCash financial exchange, places us in a very strong position to implement our vision related to Financial Exchanges in the South East of Asia. This allows us tremendous cross-selling opportunities through each other’s distribution networks as our product portfolio is complementary and a perfect fit for each of our distribution outlets and corporate clients.
“For us, taking a strong position in the travel area was very important, since insurance, remittances, phone recharges, prepaid gift cards etc. are the things that complement a consumer’s needs when they engage in travel. We believe that the cross-selling opportunities will further fuel organic growth in our EbixCash Financial Exchange portfolio.”
Ebix expects the business to generate around $33 million in GAAP revenues in 2018 and predicts operating margins of around 30%.