Indian OTA Yatra cancels merger deal with Ebix

Nearly one year after it was first announced, the merger deal between India-based online travel agency Yatra and Atlanta-based software and e-commerce firm Ebix is off.

In July 2019 Ebix announced it would acquire Yatra for $337.8 million. The plan called for Yatra to continue to operate as its own brand within the travel portfolio of EbixCash, a financial exchange that Ebix operates in India and that includes travel brands Via and Mercury.

But the deal stalled. The most recent extension for completion set a date of June 4, with both parties having the right to termination if the merger was not concluded by that date.

On Friday, June 5, Yatra announced it was canceling the agreement, saying “Ebix’s conduct breached material terms of the agreements and frustrated Yatra’s ability to close the transaction.”

The Indian OTA says it has filed a litigation against Ebix seeking “substantial damages” over the alleged breach of terms. 

In response, Ebix says it has “worked diligently to fulfill its obligations under the Merger Agreement and thus strongly disagrees with the allegations set forth in the complaint.”

Ebix says it is considering a countersuit against Yatra.