Yatra terminates Rs 2,300-cr merger pact with US software firm Ebix
Online travel company Yatra has terminated its pending merger agreement with US-based software firm and filed litigation against it in the State of Delaware, seeking “substantial damages” for alleged breaches of terms of the pact.
had signed the agreement last year to acquire Gurugram-based Yatra Online for an enterprise value of $338 million (about Rs 2,327 crore) in an all-stock deal.
“The complaint seeks to hold accountable for breaches of its representations, warranties, and covenants in the merger agreement and an ancillary extension agreement, and seeks substantial damages,” Yatra said in a statement late Friday. “Ebix’s conduct breached material terms of the agreements and frustrated Yatra’s ability to close the transaction and obtain the benefit of Yatra’s bargain for its stockholders.”
The deal was supposed to conclude in the October-December quarter after regulatory approvals but went through several extensions, according to regulatory filings with the US Securities and Exchange Commission.
“The merger agreement contains certain termination rights for Ebix and Yatra, including, among others, the right of either party to terminate the merger agreement if the merger has not been consummated on or prior to the outside date, which was previously extended to May 4, 2020,” Ebix had said in a filing on May 20.
“Pursuant to the fourth extension agreement, the outside date has been further extended to June 4, 2020, in order to provide the parties with time to determine whether they can reach mutual agreement on an amendment of certain terms of the merger agreement,” Ebix added.
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