Indian online travel booking company Yatra has terminated a pending merger agreement with Atlanta-based software firm Ebix and filed a litigation seeking â€śsubstantial damagesâ€ť over alleged breach of deal terms.
In July last year, Ebix announced its plan to acquire Yatra, giving the Indian firm an enterprise value of $337.8 million, in a move to strengthen its position in Indiaâ€™s hotel and flight ticketing market.
Late Friday, Ebix said it had provided a notice to terminate the deal. In its complaint, Yatra said it seeks to â€śhold Ebix accountable for breaches of its representations, warranties and covenants in the merger agreement and an ancillary extension agreement, and seeks substantial damages,â€ť it said in a statement.
â€śAs detailed in the complaint, Ebixâ€™s conduct breached material terms of the agreements and frustrated Yatraâ€™s ability to close the transaction and obtain the benefit of Yatraâ€™s bargain for Yatraâ€™s stockholders,â€ť it added.
Ebix did not respond to a request for comment.
On Friday, Yatra also shared an update on its financials, saying it had implemented several cost-saving measures including cutting management salaries by half across the company to steer through the coronavirus pandemic that has put a halt on most travel and hospitality activities worldwide.
The company said as of June 4 it had $32.5 million in total available liquidity and its current monthly run-rate operating fixed cost was about $1.2 million.
Yatra, which went public in 2016 following a reverse-merger with listed company Terrapin 3 Acquisition Corporation, counts Indiaâ€™s Network18, Reliance Capital, Macquarie Group and Rotation Capital among its shareholders. It handles real-time bookings for more than 108,000 hotels and home stays in India and over 1.5 million hotels around the world, it said.