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
provided an update on the state of its business while reaffirming a
strong business outlook for the future.
- Strategic Investment Committee –
The Company announced that it has received inbound interest from
several reputed strategic and institutional international players,
for substantial investments in Ebix or/and its subsidiaries.
Accordingly, the independent Board’s Strategic Investment Committee
will be evaluating any such offers, in consultation with its
investment banking and legal advisors.
- Investments in EbixCash – The
Company also announced that its Indian subsidiary is exploring
interest from a few reputed international players in taking a
substantial minority investment in EbixCash, in line with the DRHP
filed already.
- Engagement of Investment Bankers –
Ebix also declared that it is presently actively utilizing the
services of a few reputed international Bankers to refinance its
existing loan facilities. The Company also announced that it has
received an exploratory term sheet from one of its existing
lenders. The Company will announce further details on the
refinancing front, once something firm has been agreed upon, on the
refinancing side.
- EbixCash IPO update – The Company
is hopeful of an expeditious approval of its subsidiary’s DRHP
leading to filing of the RHP and the eventual IPO. Also, EbixCash
has already received in-principal approval from the two stock
exchanges BSE and NSE. The Company reaffirmed its commitment to an
expeditious IPO in line with the Indian regulatory and compliance
guidelines.
- EbixCash Compliance update –
EbixCash has received all the requisite license renewals for future
periods for its various regulated businesses including foreign
exchange, pre-paid card businesses, and the BBPOU licenses from the
financial regulatory body governing such licenses; besides having
cleared the inspection audit of the financial regulatory body
successfully.
- EbixCash Audit Update – Two
independent joint statutory auditors for the consolidated India
business have audited and filed the EbixCash audit for the 3-year
period ended March 2022 and expressed an unqualified opinion on
both - the consolidated India business and the Indian gift card
subsidiary.
- Consistent Compliance
Oversight – The Company’s accounting treatment of any of its
EbixCash businesses has remained unchanged across its previous and
present auditors, with strict compliance to accounting standards.
The Company has the oversight of a highly respected independent
Board including the former SEC Economics cell chairman, Former
Chairman of Bombay stock exchange, former Executive Director
Reserve Bank of India, Former Deputy Managing Director of India’s
largest Bank SBI amongst others. Besides, Ebix’s consolidated SOX
compliance is handled by EY, while its valuation is also handled by
KPMG.
- EbixCash Legal update – On July 7th
2022, the Company announced that the Delhi Court has blocked the
publishing of a short document in India, with immediate effect.
Further, the Court, vide its Order, directed Google LLC and
Twitter, Inc to take down relevant URLs (as specified in the Order)
from the Indian domain pertaining to the short report. The short
report was further discredited with the subsequent filing of the
3-year audited financials by two independent auditors, besides the
renewal of various regulatory licenses and clearance of various
inspection audits by the relevant agencies.
- Strong Financial Discipline – Ebix
today reaffirmed its confidence in the business’s continued cash
generation abilities. The Company’s financial discipline can be
gauged from the fact that over the last 8 quarters, the Company has
made cumulative cash payments aggregating $229 million just for
cash taxes, shareholder dividends and lender principal &
interest payments only. This includes principal payments of $71.7
million towards debt reduction.
- Business Outlook – The Company
reaffirmed its strong business outlook for its businesses
worldwide.
- In spite of the drastic adverse
impact of COVID-19 on some of its businesses wherein a few thousand
people are employed (like travel, foreign exchange, remittance,
consulting etc.), the Company has continued to clock EBITDA plus
stock-based compensation run rate of $144 million as of June 30th
2022.
- While the significant strengthening
of the US dollar in recent times will have an adverse impact on its
results, yet the Company believes that the post COVID 19 rebounding
of many of the businesses is likely to benefit the Company in a
good measure.
- The Company’s travel and foreign
exchange businesses continue to show great recovery post Covid-19,
in Q3 2022 both year-over-year and sequentially. In Q2 2022, the
forex businesses grew 199% year-over-year while travel businesses
grew 399% year-over-year.
- The Company’s bus exchange business
last week secured the mandate to power the technology in all the
buses run by India’s largest state roadways corporation for a large
western state. The Company will soon announce details of that
award.
About Ebix, Inc.
With approximately 200 offices across 6
continents, Ebix, Inc., (NASDAQ: EBIX) endeavors to provide
on-demand software and e-commerce services to the insurance,
financial services, travel, 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.
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.
With a "Phygital” strategy that combines over
650,000 physical agent distribution outlets throughout India and
Southeast Asia as of December 31, 2021, to an Omni-channel online
digital platform, the Company’s Financial exchange portfolio of
software and services encompasses domestic and international money
remittance, foreign exchange (Forex), pre-paid gift cards, utility
payments, travel services and technologies for insurance, bus
information systems, lending and wealth management across 75+
countries including India. EbixCash has Forex operations in
approximately 16 international airports, including Delhi, Mumbai,
Mumbai, Hyderabad, Chennai and Kolkata. EbixCash is a leader in the
international remittance business based on gross transactional
value. EbixCash, through its travel portfolio (Via.com and
EbixCash.com), is one of the leading travel exchanges based in
India and catering to Southeast Asian markets, with over 517,000
agents and approximately 17,900 registered corporate clients.
EbixCash's financial technologies business offers software
solutions to various clients in the areas of wealth, asset and
lending management, insurance and bus information systems.
EbixCash's business process outsourcing services provide
information technology and call center services to a variety of
industries. For more information, visit the Company’s website at
www.ebixcash.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,” 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 for
the year ended December 31, 2021 and subsequent reports filed with
the SEC, as well as: the ongoing effects of the Covid-19 global
pandemic, 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 India, Australia
and Asia, Latin America and Europe wherein we have significant
and/or growing operations); fluctuations in the equity markets,
including market disruptions and significant interest rate
fluctuations, which may impede our access to, or increase the cost
of, external financing; ability to secure additional financing to
support capital requirements; credit facility provisions that could
materially restrict our business; costs and effects of litigation,
investigations or similar matters that could affect our business,
operating results and financial condition; and international
conflict, including terrorist acts and wars.
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.
Disclaimer:
EbixCash Limited is proposing, subject to
receipt of requisite approvals, market conditions and other
considerations, to make an initial public offer of its equity
shares and has filed a draft red herring prospectus (“DRHP”) with
the Securities and Exchange Board of India. The DRHP is available
on the website of the SEBI at www.sebi.gov.in as well as on the
websites of the book running lead managers, Motilal Oswal
Investment Advisors Limited at www.motilaloswalgroup.com, Equirus
Capital Private Limited at www.equirus.com, ICICI Securities
Limited at www.icicisecurities.com, SBI Capital Markets Limited at
www.sbicaps.com and YES Securities (India) Limited at
www.yesinvest.in, respectively, and the websites of the stock
exchange(s) at www.bseindia.com and www.nseindia.com, respectively.
Investors should note that investment in equity shares involves a
high degree of risk and for details relating to such risk, see
"Risk Factors" of the RHP, when available. Potential investors
should not rely on the DRHP for any investment decision.
CONTACT:
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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