Yatra Online Terminates Merger Deal With U.S.-Based Ebix Inc., Files Suit
Yatra Online Inc. is terminating its pending merger agreement with the U.S.-based Ebix Inc. and filed a litigation seeking substantial damages from software firm for breaching the agreement.
Ebix Inc. had signed an agreement to acquire Yatra Online Inc., the parent company of Yatra.com, for an enterprise value of $337.8 million (over Rs 2,300 crore) in 2019.
The company, "has provided notice of termination of its pending merger agreement with Ebix Inc. and filed litigation in the Court of Chancery of the State of Delaware over Ebix's breaches of the merger agreement," Yatra said in a statement on Saturday.
Yatra seeks to hold Ebix accountable for breaches of its representations, warranties and covenants in the merger agreement and an ancillary extension agreement, and seeks substantial damages. "As detailed in the complaint, Ebix's conduct breached material terms of the agreements and frustrated Yatra's ability to close the transaction and obtain the benefit of Yatra's bargain for Yatra's stockholders," the
As of June 4, 2020, Yatra Online Inc. had $32.5 million in total available liquidity and its current monthly run-rate operating fixed cost was approximately $1.2 million, the Gurugram-headquartered company said in a separate statement.