Yatra Online Inc revealed that it had terminated the merger agreement with Ebix Inc, a US-based software company. Last year the two companies had signed an online agreement,which stated that Ebix would acquire Yatra for $337.8 million approximately Rs. 2,300 crore.
Yatra has now filed litigation in the Court of Chancery of State of Delaware against Ebix on charges that the company had breached the merger. Yatra is holding Ebix accountable for breaching “representations, warranties and covenants in the merger agreement and an ancillary extension agreement, and seeks substantial damages,” they added in their statement.
This breach by Ebix incapacitated Yatra as they were unable to close the transaction and avail the profits of this bargain for the stockholders of Yatra.
In another statement released, Yatra Online Inc said that the company’s total liquidity as of June 4, 2020, was $32.5 million or more than Rs 240 crore, and their current monthly run rate operating fixed cost was $1.2 million or more than Rs 8 crore.
Yatra is a famous online travel platform that has been providing national and international services for air ticketing, homestays, hotel bookings, rail ticketing, holiday packages, bus ticketing, and ancillary services for more than a decade.
Conclusion
With this contract being terminated and a litigation filed, we look forward to see what Ebix has to reply over their breach of contract.(Ref)
