Makemytrip has acquired Hotel Travel Group for $25mn. HT Group has been operating the website www.hoteltravel.com for more than a decade and has presence in Thailand, Singapore and Malaysia.
As far as the acquisition is concerned, the total consideration payable to the promoters of the HT Group by MakeMyTrip for acquiring the HT Group is $25 million, of which $15 million was paid partly in cash and partly in the form of MakeMyTrip shares in the first Closing that occurred on November 6, 2012.
The balance USD 10 million is agreed to be paid in the form of MakeMyTrip shares, in 3 annual tranches through March 2016. Two of the Promoters of the HT Group will continue in employment with the HT Group in key capacities, and will be eligible for additional earn outs and incentives for the next 3 – 4 years based on HT Group meeting certain revenue and EBIDTA targets. The additional earn outs can range from NIL to USD 35 million and are payable partly in cash and partly in the form of MakeMyTrip shares.
MMT’s revenue stands at $45.7 million in 2Q13 versus $43.8 million in 2Q12.