Travel services company Yatra Online Inc on Friday said it was terminating a pending merger agreement with US-based software firm Ebix Inc and had filed litigation seeking “substantial” damages for Ebix’s alleged breach of deal terms.
Ebix had agreed to buy Yatra last year for an enterprise value of $337.8 million, aiming to beef up its portfolio of Indian travel companies, including Mumbai-based Mercury Travels and Delhi-based Leisure Corp.
Yatra Online Inc said that it was seeking damages against Ebix for breaching terms of their merger agreement, including clauses on representations and covenants. Ebix did not immediately respond to Reuters’ request for comment.
Separately, Yatra said it had implemented certain cost-saving measures starting April, including cutting management salaries by half and freezing salary hikes to weather the impact of the coronavirus (Covid-19) pandemic on its business.
Shares of Yatra were about 8 per cent lower in extended trading.
Source: Business-Standard