Indian on-line journey reserving firm Yatra has terminated a pending merger settlement with Atlanta-based software program agency Ebix and filed a litigation searching for “substantial damages” over alleged breach of deal phrases.
In July final 12 months, Ebix introduced its plan to accumulate Yatra, giving the Indian agency an enterprise worth of $337.eight million, in a transfer to strengthen its place in India’s lodge and flight ticketing market.
Late Friday, Ebix stated it had supplied a discover to terminate the deal. In its criticism, Yatra stated it seeks to “maintain Ebix accountable for breaches of its representations, warranties and covenants within the merger settlement and an ancillary extension settlement, and seeks substantial damages,” it stated in a press release.
“As detailed within the criticism, Ebix’s conduct breached materials phrases of the agreements and pissed off Yatra’s potential to shut the transaction and procure the advantage of Yatra’s cut price for Yatra’s stockholders,” it added.
Ebix didn’t reply to a request for remark.
On Friday, Yatra additionally shared an replace on its financials, saying it had carried out a number of cost-saving measures together with reducing administration salaries by half throughout the corporate to steer by the coronavirus pandemic that has put a halt on most journey and hospitality actions worldwide.
The firm stated as of June four it had $32.5 million in complete out there liquidity and its present month-to-month run-rate working mounted value was about $1.2 million.
Yatra, which went public in 2016 following a reverse-merger with listed firm Terrapin 3 Acquisition Corporation, counts India’s Community18, Reliance Capital, Macquarie Group and Rotation Capital amongst its shareholders. It handles real-time bookings for greater than 108,000 motels and residential stays in India and over 1.5 million motels around the globe, it stated.