Terrapin 3 acquires Yatra for $218 million
Terrapin 3 Acquisition Corp, a Nasdaq-listed special purpose acquisition firm, has agreed to buy online travel and hotel bookings platformYatra.com in a $218 million deal.
As per the terms of the merger, the combined entity aims to be listed as YTRA on Nasdaq. The current shareholders of Yatra will hold at least 35% of the issued and outstanding shares in the new merged entity and $100 million cash will be allocated to its books. Shareholders of Yatra will get a maximum of $80 million in cash for now while they can also get additional amount of up to $35 million if certain business targets are met over the next one and half year.
Norwest Venture Partners, Intel Capital, Vertex Ventures Holdings, IDG Ventures India and Anil Ambani-led Reliance Group are key investors in the company founded in 2006.
Started by Nathan Leight along with affiliates of Terrapin Partners, LLC and affiliates of Macquarie Group Limited, TRTL has also got a commitment from MIHI LLC, an affiliate of Macquarie Capital, of an additional $20 million of TRTL equity under the proposed transaction.
Gurgaon-based Yatra has been looking to raise funds for some time now having held talks with several players for a stake sale amid rising competition from the hotel aggregators like SoftBank-backed Oyo Rooms, and traditional rivals Makemytrip and Goibibo. MakeMyTrip had scooped up about Rs 1,200 crore from China’s Ctrip in January this year.
The new entity will be led by Yatra co-founder & CEO Dhruv Shringi. At the time of IPO, TRTL had raised $212.75 million in 2014.
Sourced from Agencies, Featured Image Courtesy: romans-group.com
