Yatra Online Inc, an online travel company informed it is terminating unresolved merger agreement with an US-based software firm Ebix Inc. It has also filed a litigation seeking fundamental damages from Ebix over violations of the agreement. Ebix Inc had signed an agreement to acquireYatra Online Inc, which is the parent company of online travel firm Yatra.com, for an enterprise value of over Rs 2,300 crore in the year 2019.
Yatra Online Inc also confirms to hold Ebix questionable for contravention of its representations, warranties and covenants in the merger agreement and an ancillary extension agreement, and claims substantial damages, the statement said. “As detailed in the complaint, Ebix’s conduct ruptured material terms of the agreements and disappointed Yatra’s capability to close the transaction and obtain the benefit of Yatra’s bargain for Yatra’s stockholders,” Yatra Online Inc said.
In a separate statement it further stated, Yatra Online Inc said, as of June 4, 2020, the company had over Rs 240 crore in total available liquidity and its current monthly run-rate operating fixed cost was somewhere near to over Rs 8 crore.
Gurugram-based Yatra.com is a tough player in the online travel industry and provides services including facilities like domestic and international air ticketing, hotel bookings, home-stays, holiday packages, bus ticketing, rail ticketing, activities and ancillary services.