Online travel company Yatra has called off its merger with Ebix citing breach of merger agreements. It has also approached a US court against the breach of terms against Ebix.
As per a release by the company, "the complaint seeks to hold Ebix accountable for breaches of its representations, warranties and covenants in the merger agreement and an ancillary extension agreement and seeks substantial damages."
The release further states that, "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 Yatra's stockholders."
Ebix had on July 17 last year announced that it has entered into a definitive agreement under which it will acquire Yatra Online through a merger deal.
Moneycontrol was the first to report that that Ebix was acquiring Yatra for Rs 2,314 crore.
Meanwhile, in a separate business update, Yatra said it has implemented certain cost reduction initiatives starting April 2020. These include management salaries being reduced by half, in addition to a freeze in salary hikes in light of the impact of the COVID-19 pandemic on its business.
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