Indian travel firm Yatra scraps merger deal with US-based Ebix

India`s Yatra Online Inc said on Friday it was terminating a pending merger agreement with U.S. software firm Ebix Inc , and had filed a litigation seeking "substantial" damages for Ebix`s alleged breach of deal terms. Ebix had agreed to buy Yatra in 2019 for an enterprise value of $337.8 million, aiming to beef up its portfolio of Indian travel companies, including Mumbai-based Mercury Travels and Delhi-based Leisure Corp.

Indian travel services company Yatra said it is seeking damages against Ebix for breaching terms of their merger agreement, including clauses on representations and covenants.

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Ebix did not immediately respond to Reuters` request for comment.

Separately, Yatra said it has implemented certain cost-saving measures starting April, including cutting management salaries by half and freezing salary hikes to weather the impact of the COVID-19 pandemic on its business.

Shares of Yatra were about 8% lower in extended trading.