Homegrown online travel company MakeMyTrip, a Nasdaq listed firm has decided to acquire rival Indiantravel company
Ibibo at an undisclosed amount to form the country’s biggest online travel company. The combined entity will compete against rivals Yatra and Cleartrip.
Following the closing of the transaction, Make My Trip will own 100 per cent of ibibo Group. ibibo Holdings will own a 40 per cent stake in MakeMyTrip, becoming its single largest shareholder and will contribute proportionate working capital upon the closing of the transaction.
The transaction is expected to unlock value for customers, supply partners and shareholders, by combining the complementary strengths of each business. MakeMyTripbrings its strong brand, robust mix of domestic and outbound hotels and packages business and strong position in the air ticketing business. ibibo Group, via its brand goibibo and redBus, comes with a strong presence in various fast growing travel segments including hotels, bus bookings and air ticketing, MakeMyTrip said in a statement.
Following the closing of the proposed transaction, Founder Deep Kalra will remain Group CEO and Executive Chairman of MakeMyTrip and Co-founder Rajesh Magow will continue to remain CEO India of MakeMyTrip. Founder and CEO of ibibo Group, Ashish Kashyap, will join MakeMyTrip’s executive team as a Co-founder and President of the organisation.