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Yatra ends the merger with Ebix Indian online travel booking company
Yatra has concluded a pending merger contract with Ebix, a software company based in Atlanta, which seeks "substantial harm" because of alleged intrusions.
In July, Ebix announced its plan to acquire Yatras in an effort to strengthen India 's position in hotel- and flight-ticketing, giving the Indian company the business value of $337.8 million.
Ebix said late Friday it issued a notice to terminate the agreement. In its complaint, Yatra said that it aims "to hold Ebix responsible and seek substantial damages for infringements, guarantees and covenants in the merger and an auxiliary extension agreement."
'As detailed in the complaint, the conduct of Ebix has violated material terms of the agreements and thwarted the ability of Yatra to close the transaction and benefit Yatra's stockholders' deal' he added.
Ebix did not answer a comment request.
On Friday Yatra reported that it had taken multiple cost-saving measures including half the company's management salaries to steer the coronavirus pandemic that had stopped travel and entertainment activities worldwide. Yatra's finances have also been updated.
The company said it had a total liquidity of $32.5 million from 4 June and its current monthly running fixed cost was approximately $1.2 million.
Yatra, which was issued in 2016 after the reverse merger of the company Terrapin 3 Acquisition Corporation, is among the owners of India's Network18, Reliance Capital, Macquarie Group and Rotation Capital.
It operates on-line reservations for over 108,000 hotels and home stays around the globe, he said.
