Ebix, Inc. (NASDAQ:EBIX), a leading international supplier of
On-Demand software and E-commerce services to the insurance,
financial, healthcare and e-learning industries, today announced
that it has acquired India based Indus Software Technologies Pvt.
Ltd. (Indus), a global provider of enterprise Lending software
solutions to financial institutions, captive auto finance and
telecom companies, for approximately $29 million including $5
million of contingent earn out.
Indus will be tightly integrated into Ebix’s
Financial Exchange EbixCash offering in India and abroad, with key
Indus business executives becoming an integral part of the combined
EbixCash senior leadership. The acquisition of Indus will increase
the employee strength of Ebix in India by 900 to approximately
7,200 employees.
In the financial year 2017, Indus had revenues
of $22 million and EBITDA of approximately 17%. Ebix believes that
the business can continue to grow at the rate of 12% to 15% plus
annually with operating margins of 30% or more, once fully
integrated. Ebix expects the acquisition to be immediately
accretive to its earnings and forecasts $0.19 in increased Diluted
EPS, once the acquisition is fully integrated over the next 6
months. Ebix funded the acquisition using its internal cash
reserves and did not use any investment bankers for the
transaction. KeyBanc Capital Markets Inc. served as the exclusive
financial advisors to Indus Software and its principal
owners Black Dragon Capital.
Founded in 1990, Indus offers a specialized
suite of products and technology solutions for Banking &
Finance, Telecom and Insurance Industries. With more than 150
enterprise lending implementations in 15 languages across 50 plus
countries, Indus derives 56% of its revenues from India and the
balance coming primarily from Europe, Middle East and South-East
Asia.
With enterprise solutions that are designed for
international markets with multi-currency, multi-lingual and
multi-organizational support, Indus technology today forms the
backbone lending engine for over 100 banking and
finance, captive auto finance, telecom and insurance companies
globally. Indus today has an impressive base of global blue-chip
customers and partners –
- Banking and Finance clients include
leading names like Standard Chartered Bank, Societe Generale,
Canara Bank, Kotak Mahindra Bank, Doha Bank, United Arab Bank,
Dubai First Bank, IDFC Bank, Thanachart Insurance and FMB etc.
- Captive Auto Finance clients like
Isuzu Leasing, Volvo, Toyota Financial Services, BMW, Nissan,
Volkswagen and HeroFinCorp. etc.
- Insurance clients like HDFC Life,
Kotak Life insurance and Exide Life insurance etc.
- Telecom clients like Idea, Airtel,
Maxis, Aircel, Viva and Ooredo etc.
Indus solutions tend to form the backbone of
Enterprise loan life cycle management for a Lender with modules
that encompass retail and corporate origination, loan management
and collections for areas as diverse as auto, mortgage, credit
card, personal loans, education loans, consumer loans and Gold
loans etc. The Company’s solution set includes functionalities like
Commissions & Incentives, Workflow management, Mobility, Lead
management, Collateral management, Dealer Funding etc. besides its
end-to-end Lending suite. Built on modern J2EE database independent
architecture that can easily be ported to any handheld device,
Indus solutions can be implemented as an integrated end-to-end
solution or as independent modules capable of interfacing with
legacy or existing host systems.
Ebix Chairman, President and CEO Robin Raina
said, “We have always believed that Lending is a must have
functionality for any leading end-to-end Financial Exchange.
Accordingly, in our vision plan for EbixCash with respect to the
area of Lending, we see three opportunities: one - powering the
technology for Lenders in any industry; two – creating a
person-to-person lending exchange that can be available over the
web, e-wallets, mobile phones, white label Corporate intranets and
EbixCash outlets to consumers; three – lending services for our
EbixCash outlets that allows them the power to borrow and expand
their business with EbixCash. The acquisition of Indus is a step in
the direction of accomplishing the first step of that vision
plan.”
“Indus provides us now with the ability to
interface a Person to Person (P2P) Lending exchange into the
back-end systems of top lenders in the market place and move data
seamlessly across front-end and back-end systems. This will also
allow Indus clients to access the 260,000+ physical distribution
expanse of EbixCash, along with our strong corporate and electronic
network, and be a lending provider to our vast consumer network in
India, through a future EbixCash P2P Exchange.” Robin added, “Indus
also fits in well with our goals of expanding the EbixCash network
globally, since it provides us with an international customer base
across Europe, Middle East and South-East Asia.”
Louis Hernandez Jr., founder, managing director
and CEO of Black Dragon Capital, said, “We’re very proud of the
work we have done with the Indus team to create a high-growth and
profitable company that is a perfect fit for Ebix’s performance
driven and growth culture. Ebix is acquiring outstanding
talent and a clear market leader with a global brand and
distribution, that will help further its growth while adding to
Ebix’s comprehensive product suite. It’s great for the
customers, employees and partners at Indus and is very exciting for
everybody. Overall, Black Dragon Capital accomplished what it does
best, which is to help a company accelerate its growth.”
Leadership in India’s Financial Exchange
markets
The addition of the Indus to the EbixCash
portfolio further strengthens Ebix’s leadership in India’s
Financial Exchange markets:
-
- EbixCash already has a dominant
leadership position in the inward remittance exchange arena in
India.
- EbixCash is already the largest
domestic remittance exchange in India with domestic remittance
volume of approximately $100 million per month.
- EbixCash is seen as a leader in the
outward remittance and Forex markets, with Forex counters in 25
international airports, besides a vast network encompassing 165
outlets spread across 55 cities, 200+ franchisee partners, 2,000+
travel agents, 50+ banks and financial institutions, 1000+ SMEs,
and 150+ large corporate clients.
- EbixCash through its travel portal
Via.com is one of South East Asia’s leading travel exchanges with
over 110,000 distribution outlets and 8,000 corporate clients,
processing over 24.5 million transactions every year.
- EbixCash is also a recognized
leader in prepaid cards, domestic remittances and bill payments,
processing approximately 600,000 transactions per day and
approximately $2 Billion in annual payment volume.
- EbixCash is already recognized as a
leader in the Gift card space with brand gift cards across all
categories with 100+ Brand copartners like Amazon, Flipkart.com,
Croma, Lifestyle, Big Bazaar, Tanishq, BookMyShow.com, Reliance
Digital, MakeMyTrip.com, Café Coffee Day, Pizza Hut, Myntra.com,
Pantaloon etc.
- EbixCash is a leader in the utility
payment space serving as a payment exchange for large utility
providers like BSES, Tata Power, NDPL, Reliance Energy and
Mahanagar Gas etc.
- Ebix’s recent joint venture
initiative with Bombay Stock Exchange positions it as a gateway for
insurance carriers to sell insurance to India’s vast population
through EbixCash’s tens of thousands of phygital outlets across the
country, besides BSE’s strong network across the country.
About Indus
Founded in 1990, Indus offers a specialized
suite of products and technology solutions for Banking &
Finance, Telecom and Insurance Industries. The Company’s innovative
enterprise level loan origination, receivables management and debt
management solutions are trusted by over 100 plus clients spread
across 50 plus countries. With deep domain understanding and
through its learnings from industry best practices, the Company has
continued to enhance products to deliver the most relevant
solutions to its clients. Headquartered in Pune and with
development centers in Chennai and Pune, the Company supports 150
plus implementations across the globe. For more information, visit:
www.indussoft.com
About Ebix, Inc.
With 50+ offices across 5 continents, Ebix,
Inc., (NASDAQ:EBIX) endeavors to provide On-Demand software and
E-commerce services to the insurance, financial, healthcare and
e-learning industries. In the Insurance sector, the Company’s main
focus is to develop and deploy a wide variety of insurance and
reinsurance exchanges on an on-demand basis, while also, providing
Software-as-a-Service ("SaaS") enterprise solutions in the area of
CRM, front-end & back-end systems, outsourced administrative
and risk compliance, across the world.
With a "Phygital” strategy that combines 260,000
physical distribution outlets in many Southeast Asian Nations
(“ASEAN”) countries, to an Omni-channel online digital platform,
the Company’s EbixCash Financial exchange portfolio encompasses
leadership in areas of domestic & international money
remittance, Forex, travel, pre-paid & gift cards, utility
payments, etc., in an emerging country like India. The Company’s
Forex Exchange has an approximate 70% market share of India’s
airport Foreign Exchange business encompassing 25 international
airports like Delhi, Mumbai, Bangalore, Chennai and Kolkata
International airports, while conducting over 1 million
transactions per annum. EbixCash, through its travel portal
Via.com, is also one of Southeast Asia’s leading travel exchanges
with over 110,000 distribution outlets and 8,000 corporate clients
processing over 24.5 million transactions every year. For further
details, visit www.ebixcash.com
Through its various SaaS-based software
platforms, Ebix employs thousands of domain-specific technology
professionals to provide products, support and consultancy to
thousands of customers on six continents. For more information,
visit the Company’s website at www.ebix.com
SAFE HARBOR REGARDING FORWARD-LOOKING
STATEMENTS
As used herein, the terms “Ebix,” “the Company,”
“we,” “our” and “us” refer to Ebix, Inc., a Delaware corporation,
and its consolidated subsidiaries as a combined entity, except
where it is clear that the terms mean only Ebix, Inc.
The information contained in this Press Release
contains forward-looking statements and information within the
"safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933, and
Section 21E of the Securities Exchange Act of 1934. This
information includes assumptions made by, and information currently
available to management, including statements regarding future
economic performance and financial condition, liquidity and capital
resources, acceptance of the Company's products by the market, and
management's plans and objectives. In addition, certain statements
included in this and our future filings with the Securities and
Exchange Commission ("SEC"), in press releases, and in oral and
written statements made by us or with our approval, which are not
statements of historical fact, are forward-looking statements.
Words such as "may," "could," "should," "would," "believe,"
"expect," "anticipate," "estimate," "intend," "seeks," "plan,"
"project," "continue," "predict," "will," "should," and other words
or expressions of similar meaning are intended by the Company to
identify forward-looking statements, although not all
forward-looking statements contain these identifying words. These
forward-looking statements are found at various places throughout
this report and in the documents incorporated herein by reference.
These statements are based on our current expectations about future
events or results and information that is currently available to
us, involve assumptions, risks, and uncertainties, and speak only
as of the date on which such statements are made.
Our actual results may differ materially from
those expressed or implied in these forward-looking statements.
Factors that may cause such a difference, include, but are not
limited to those discussed in our Annual Report on Form 10-K and
subsequent reports filed with the SEC, as well as: the risk of an
unfavorable outcome of the pending governmental investigations or
shareholder class action lawsuits, reputational harm caused by such
investigations and lawsuits, the willingness of independent
insurance agencies to outsource their computer and other processing
needs to third parties; pricing and other competitive pressures and
the Company's ability to gain or maintain share of sales as a
result of actions by competitors and others; changes in estimates
in critical accounting judgments; changes in or failure to comply
with laws and regulations, including accounting standards, taxation
requirements (including tax rate changes, new tax laws and revised
tax interpretations) in domestic or foreign jurisdictions; exchange
rate fluctuations and other risks associated with investments and
operations in foreign countries (particularly in Australia, UK and
India wherein we have significant operations); equity markets,
including market disruptions and significant interest rate
fluctuations, which may impede our access to, or increase the cost
of, external financing; and international conflict, including
terrorist acts.
Except as expressly required by the federal
securities laws, the Company undertakes no obligation to update any
such factors, or to publicly announce the results of, or changes to
any of the forward-looking statements contained herein to reflect
future events, developments, changed circumstances, or for any
other reason.
Readers should carefully review the disclosures
and the risk factors described in the documents we file from time
to time with the SEC, including future reports on Forms 10-Q and
8-K, and any amendments thereto. You may obtain our SEC filings at
our website, www.ebix.com under the "Investor Information" section,
or over the Internet at the SEC's web site, www.sec.gov.
CONTACT:
Bhavik Vasa
+91 9819389881 or bhavikv@ebixcash.com
Darren Joseph
678 -281-2027 or IR@ebix.com
David Collins or Chris Eddy
Catalyst Global - 212-924-9800 or ebix@catalyst-ir.com
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