A U.S. court has dismissed Yatra’s claim that its Ebix merger was sabotaged by the e-commerce and software company.
The Indian online travel agency submitted a complaint in May to argue that the deal had been scotched after Ebix deemed it to be no longer an attractive acquisition.
The two companies had originally begun negotiations in early 2019 regarding a potential acquisition of Yatra by Ebix.
A deal was struck for Ebix to acquire Yatra for $338 million via a merger and the agreement signed in July 2019.
The deal was never closed however and in early June 2020, Yatra terminated the agreement and filed a lawsuit against Ebix.
Various legal proceedings have ensued with Ebix dismissing Yatra’s claims of fraud and sabotage saying it no longer had any liability once the agreement was terminated.
The Delaware Chancery Count opinion was in favor of Ebix saying the merger agreement terms eliminated any breach of contract once Yatra terminated the agreement.
As well as fighting the pandemic, Yatra, which returned to growth in recent months, has also had to fend off an attack from shareholder Maguire Investments.
Maguire published a letter in July detailing its concerns about the ability of Yatra’s board and management team “to realize the company’s true potential.”
Dhruv Shringhi hit back with a letter to shareholders regarding its Q1, fiscal year 2022 results saying the board and management team were well qualified to lead the company.