InvestorQ : Why is Yatra Online terminating its merger agreement wtiht EBIX of the US?
Anamika Sodhani made post

Why is Yatra Online terminating its merger agreement wtiht EBIX of the US?

Answer
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3 months ago


Yatra Online has decided to terminate its pending merger agreement with the US-based software firm Ebix. Additionally, Yatra has also filed a litigation seeking substantial damages from Ebix over breache of the agreement. It maybe recollected that Ebix had signed a term sheet to acquire Yatra Online, parent of Yatra.com, for an enterprise value of $338 million (Rs.2300 crore). The deal had been signed in the year 2019. It appeared like Ebix was trying to delay the deal and force Yatra to accept a lower price, something Yatra was not ready for. The business conditions have changed substantially in the last one year due to COVID-19.


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Roshni Hegde answered.
3 months ago


The agreement between Indian travel firm Yatra and US-based software firm Ebix got bitter Ebix disagreed with Yatra's legal notice that said “currently considering all options, including a counter-suit against Yatra.”

Yatra is looking to terminate its pending merger agreement with Ebix. India’s second-largest travel agency has now filed a case in the State of Delaware, US against the US firm for breach of the agreement. Positive impact on Yatra's share has been seen while EBIX share has gone down today, June 10.