Indian travel firm Yatra scraps merger deal with U.S.-based Ebix (updated)

Yatra Online

05/06/2020 22:34

(Adds background on merger, details on litigation, cost cuts)
    June 5 (Reuters) - India's Yatra Online Inc said on Friday
it was terminating a pending merger agreement with U.S. software
firm Ebix Inc  EBIX.O , and had filed a litigation seeking
"substantial" damages for Ebix's alleged breach of deal terms. 
    Ebix had agreed https://www.reuters.com/article/us-yatra-online-m-a-ebix/software-firm-ebix-offers-to-buy-indias-ticketing-firm-yatra-idUSKBN1QS1PU
 to buy Yatra in 2019 for an enterprise value of $337.8 million,
aiming to beef up its portfolio of Indian travel companies,
including Mumbai-based Mercury Travels and Delhi-based Leisure
Corp.
    Indian travel services company Yatra said it is seeking
damages against Ebix for breaching terms of their merger
agreement, including clauses on representations and covenants. 
    Ebix did not immediately respond to Reuters' request for
comment.
    Separately, Yatra said it has implemented certain
cost-saving measures starting April, including cutting
management salaries by half and freezing salary hikes to weather
the impact of the COVID-19 pandemic on its business. 
    Shares of Yatra were about 8% lower in extended trading. 

 (Reporting by Ayanti Bera in Bengaluru; Editing by Devika
Syamnath)
 ((Ayanti.Bera@thomsonreuters.com; 646 223 8780 - 3401;))