Ebix also has acquired a Delhi-based firm Leisure Corp, which is one of the leading players in the events related travel space, luxury trains and luxury travel.
Nasdaq-listed Ebix Inc's Indian subsidiary has acquired Mercury Travels, an East India Hotels Ltd (EIH) subsidiary firm co-owned by Oberoi Group executive chairman PRS Oberoi and travel industry veteran Ashwini Kakkar. While EIH reportedly holds 25.1% in Mercury Travels, the balance 74.9% is held by Kakkar. The exact deal value of this acquisition by Ebix was not disclosed.
Ebix also has acquired a Delhi-based firm Leisure Corp, which is one of the leading players in the events related travel space, luxury trains and luxury travel.
Ebix paid $14.2 million for the two acquisitions that was funded through internal cash reserves, according to a company statement. The inorganic move now allows Ebix to create a new travel exchange called Mercury - An EbixCash Luxury initiative.
Robin Raina, chairman, president and chief executive officer (CEO), Ebix, said in the statement, "Mercury has built a reputation for itself in the affluent luxury market place with its levels of service, built around the high standards associated with an effort backed by the Oberoi Hotels chain. Leisure Corp is a leader in the events based travel business space with a clear focus on the financial and insurance industries. We are excited to be able to bring these two leading companies together, with the goal of creating a pioneering luxury travel initiative. Between this Mercury initiative and our existing Via.com travel initiative, EbixCash is now uniquely positioned as a financial exchange that has end-to-end travel solutions for all sections of the society."
When contacted, Both Kakkar and EIH spokesperson were not available for a comment. It is also not clear if Kakkar and EIH will continue to have any kind of an association with Ebix/Mercury post this acquisition.
The newly-formed exchange platform will focus on the luxury, events and sports-related travellers and will be led by Naveen Kundu, founder and managing director, Leisure Corp. Kundu will hold 15% shareholding in this new Mercury initiative while Ebix will have a controlling 85% stake. Mercury's forex business will be integrated into EbixCash's existing CentrumDirect Ltd (CDL) Forex exchange business.
According to Kundu, with affluence and an upper middle class continuing to grow in India, it is time to have a travel exchange that can provide high standards of service and luxury to this section of the society. "I have spent my career conceptualising and implementing creative event-based travel programmes for the corporates, sports enthusiasts and the adventure travellers. We will now try to blend that expertise and niche focus, with our focus on luxury and creating new white labelled travel properties," he said.
Mercury will now feature three tightly integrated components - Mercury Travel's entire corporate, leisure and adventure related travel business with the exception of its foreign exchange (forex) business; Leisure Corp's entire sports and events related travel business (meetings, incentives, conferences and exhibitions - MICE) and Via.com's events based travel business (MICE).
Ebix said in a statement that the Mercury business initiative can continue to grow at the rate of 20% or more annually with operating margins of 30% or more, once fully integrated. Ebix expects the acquisition to be immediately accretive to its earnings and forecasts nine cents in increased diluted earnings per share, once the acquisitions are fully integrated over the next six months.
The acquisition of Mercury and Leisure Corp will increase the employee strength of Ebix in India by around 400 employees to approximately 7,600 employees. With the creation of this new luxury Mercury Division, Ebix will now have two brands in travel focused on different niche audiences – Via and Mercury.
Niche Play
- The $14.2 million deals pave the way for a new travel exchange - Mercury - An EbixCash Luxury initiative
- The newly-formed exchange platform will focus on the luxury, events and sports-related travellers
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Nasdaq")
){kind=small}
){kind=tracking}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}