Ebix issues statement on termination of merger agreement with Yatra, plans countersuit and other options

A day after Yatra Online announced to terminate the merger agreement,  Ebix Inc, who was supposed to acquire the online travel company has issued a statement where it has expressed its strong disagreement with the allegations set forth by Yatra. Ebix intends to enforce all of its rights under the Merger agreement and is currently considering all options, including a countersuit against Yatra, on account of multiple breaches of the merger agreement.

In the statement, Ebix said, “On May 14, 2020, Yatra Online, Inc., a Cayman Islands exempted company limited by shares (“Yatra”), entered into an agreement (the “Fourth Extension Agreement”) with Ebix, Inc. (“Ebix”) extending the outside date of the Merger Agreement (the “Merger Agreement”), dated July 16, 2019, by and between Yatra, Ebix and EbixCash Travels Inc., a direct, wholly-owned subsidiary of Ebix (“Merger Sub”) to June 4, 2020 (the “Outside Date”). The Merger Agreement contained 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. The Outside Date was extended to June 4, 2020, in order to provide the parties with time to determine whether they could reach mutual agreement on an amendment of certain terms of the Merger Agreement. After the expiration of the Outside Date and the failure of the two parties to agree on the terms of an amended Merger Agreement by the Outside Date, Yatra terminated the Merger Agreement on June 5, 2020, and filed suit against Ebix in the Delaware Court of Chancery for breach of contract. Ebix worked diligently to fulfil its obligations under the Merger Agreement and thus strongly disagrees with the allegations set forth in the complaint. Ebix intends to enforce all of its rights under the Merger Agreement and is currently considering all options, including a countersuit against Yatra, on account of multiple breaches of the Merger Agreement.”

Ebix had offered to acquire Yatra at an enterprise value of $336 million (around Rs 2,350 crore then) and a net equity value of $239 million to boost its portfolio of Indian travel ventures.