Online travel firm MakeMyTrip Ltd and Ibibo group on Tuesday announced the merger of the companies in a $1.8-billion deal. The venture will function under MakeMyTrip’s brand.
The transaction is expected to close by the end of December and is subject to regulatory approvals.
The deal will add popular online ticketing websites such as, goibibo.com and redbus.com, to MakeMyTrip’s portfolio, which owns the flagship brand and the alternate accommodation site Rightstay, Reuters has reported.
MakeMyTrip founder Deep Kalra will remain group chief executive and executive chairman of MakeMyTrip group and co-founder Rajesh Magow will remain chief executive of MakeMyTrip’s India business. Founder and chief executive of Ibibo group, Ashish Kashyap, will join MakeMyTrip’s executive team as a co-founder and president of the organisation, the company said in a statement.
The Ibibo group, which is jointly owned by South African technology group Naspers Ltd and Chinese investment firm Tencent, will own majority stake in the combined entity. MakeMyTrip said in a statement that Naspers and Tencent will own 40 per cent stake in the group, and will “contribute proportionate working capital upon closing”.