Ebix rejects Yatra complaint, considers all options including counter suit

Gurugram-based Yatra had said on Friday that it was going to end its pending merger deal with Ebix, and had filed a case in Delaware, US against Ebix for breach of agreement

US-based software firm Ebix said on Monday it disagrees with online travel agency Yatra's legal complaint against it, and added that it was "currently considering all options, including a countersuit against Yatra". 

Gurugram-based Yatra had said on Friday that it was going to terminate its pending merger agreement with Ebix, and had filed a case in the State of Delaware, US against Ebix for breach of the agreement.

Yatra had alleged that the complaint holds Ebix accountable for breaches of  representations, warranties and covenants in the Merger Agreement and an ancillary extension agreement, and seeks substantial damages. 

"Ebix worked diligently to fulfill 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 said in a statement on Monday.   

Ebix had said last July that it would acquire Yatra Online for an enterprise value of $338 million or Rs 2,327.4 crore in an all-stock deal.

It was supposed to conclude in the October-December quarter after regulatory approvals but went through several more extensions, according to regulatory filings with the US Securities and Exchange Commission. 

The last extension expired on June 5. "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 said in its statement.