Online travel company Yatra Online Inc said it is terminating pending merger agreement with the US-based software firm Ebix Inc and has filed a litigation seeking substantial damages from Ebix over breaches of the agreement.
Ebix Inc had signed an agreement to acquire Yatra Online Inc, the parent company of online travel firm Yatra.com, for an enterprise value of USD 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 Online Inc said in a statement.
Yatra Online Inc 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, the statement added.
"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," Yatra Online Inc said.
In a separate statement, Yatra Online Inc said, as of June 4, 2020, the company had USD 32.5 million (over Rs 240 crore) in total available liquidity and its current monthly run-rate operating fixed cost was approximately USD 1.2 million (over Rs 8 crore).
Gurugram-based Yatra.com is a major player in the online travel sector and provides services including domestic and international air ticketing, hotel bookings, homestays, holiday packages, bus ticketing, rail ticketing, activities and ancillary services.