Ebix Bid for Bus Exchange Solution Provider- Trimax IT Services, Approved by Committee of Creditors
November 15 2019 - 7:38AM
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 its Indian subsidiary has been declared as the successful
bidder and issued a letter of intent by the committee of Banks and
financial institutions, for the purchase of IT assets of Mumbai
based Trimax IT Infrastructure and services Ltd. The purchase is on
a 100% debt free basis. Once the closing is accomplished, all the
Trimax assets (excluding the smart city technology assets) will
become a part of EbixCash’s Bus Exchange and Financial Technologies
business in India.
Ebix expects the Trimax asset purchase to
deliver approximately $30 million in revenues in the year 2020 with
operating income of approximately $10 million in the year. Trimax
is India’s dominant leader in the area of Bus Exchanges handling
$1.7 Billion of annual transactions, across 30% of India’s bus
ticketing system network with 10+ large state-owned public
transport corporations as clients. Trimax also is one of the
leading players in the Financial Services hosting arena, while
managing hosting functions for 25% of the public sector banks in
India.
The Ebix offer accepted by the Committee of
Creditors for Trimax, has an upfront cash offer of approximately
$10 million for 100% common stock of the company, with the Banks
holding 15% preferred shares in the the Trimax Division for a
minimum period of 3 years, with Ebix having the right to purchase
those 15% preferred shares at its discretion based on the
prevailing market value of those shares.
Ebix expects the transaction to close over the
next 45 days, which would involve approval of the recommended plan
of the committee of Creditors by the National Company Law Tribunal
(NCLT).
About Ebix
With 50+ offices across 6 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, Ebix’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 administration
and risk compliance services, around the world.
With a "Phygital” strategy that combines 320,000
physical distribution outlets in many Southeast Asian Nations
(“ASEAN”) countries, to an Omni-channel online digital platform,
the EbixCash Financial exchange portfolio encompasses leadership in
areas of domestic & international money remittance, foreign
exchange (Forex), travel, pre-paid & gift cards, utility
payments, lending, wealth management etc. in India and other
markets. EbixCash’s Forex operations have emerged as a leader in
India’s airport Foreign Exchange business with operations in 32
international airports including Delhi, Mumbai, Bangalore,
Hyderabad, Chennai and Kolkata, conducting over $4.8 billion in
gross transaction value per year. EbixCash’s inward remittance
business in India conducts approx. $6.5 billion gross annual
remittance business, confirming its undisputed leadership position
in India. EbixCash, through its travel portfolio of Via and
Mercury, is also one of Southeast Asia’s leading travel exchanges
with over 2,200+ employees, 212,450+ agent network, 25 branches and
over 9,800 corporate clients; processing an estimated $2.5 billion
in gross merchandise value per year. For more information, visit
the Company’s website at www.ebix.com
Contact:
Darren Joseph
IR@ebix.com or +1 678 281 2027
David Collins or Chris Eddy
Catalyst Global + 1 212-924-9800 or
ebix@catalyst-ir.com
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