Sify Acquired Globe Travels For A Total Consideration Of $4 Million

Here are some numbers on Sify’s Globe Travels acquisition. The total consideration for the acquisition is $4 million. It will be paid as $2.5 million in cash and the rest in performance-related pay outs in the form of stock options. Globe Travels had revenues of $1.1 million last year. EBITDA was around $400,000.

Raju Vegesna on Globe Travel acquisition
We believe that this is a market where there is a huge growth and a large base. The U.S. to India travel space, where Globe Travels has a lot of strength, itself as a sector is growing by more than 20% to 25% a year. In addition, we also believe that there will be growth coming from domestic business. Also, it will take some time for us to ramp that up. Plus, there will be an opportunity for us to grow in allied areas like hotels and cars.
So we expect that the growth rate will be very significant. Certainly, it will not be significantly lower or higher than our portal growth which, as you know, is almost 100% a year. Obviously this business will not match that, but certainly it will be a very large growth, a good size.

Pijush Das, President of Access Media Business of Sify
Comparable portal businesses have been valued much higher, but we were able to negotiate this deal very economically and favorably because of our ability to give him (Globe Travels) stock options which are perceived at very high value by the seller.
Related:
Sify Acquires India-US E-Ticketing Company Globe Travels

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