Ebix, Inc. (NASDAQ:EBIX), a leading international supplier of
On-Demand software and E-commerce services to the insurance,
financial, e-governance and healthcare industries, today announced
that it has entered into an agreement to acquire the Money Transfer
Service Scheme (MTSS) Business of Transcorp International Limited
(BSE:TRANSCOR.BO), for approximately $7.4 million, through one of
its Indian subsidiaries. Transcorp International Inward Remittance
Exchange encompasses 7,500 Distribution Outlets, 40 Branches,
processing approximately 1.7 Million Transactions Per Annum.
The agreement while approved by the Transcorp
International Board, is subject to its shareholders and other
regulatory/commercial approvals. The customary process for such
approvals can take a timeline of 45 to 60 days.
The acquisition once approved, is expected to be
accretive to Ebix earnings immediately. The Company funded the
transaction using its internal cash reserves. Ebix did not use any
investment bankers for the transaction.
With a market share of almost 10% percent of
Western Union's inward remittance flows in India, Transcorp
International was one of the Top 5 largest international remittance
(MTSS) players in India. This is Ebix’s fourth remittance
related acquisition, following the announcement of the acquisition
of YouFirst Money Express Private Limited and the asset purchases
of Paul Merchants Limited and Wall Street Finance Limited. Ebix
intends to consolidate all these acquisitions into its EbixCash
Financial Exchange operations bringing significant synergies and
reducing redundancies to the combined operation.
The acquisition of the MTSS Business, which
controls the 5th largest share of the market, would further
strengthen Ebix’s emerging leadership position in the Financial
Exchange markets in India. The addition of Transcorp International
MTSS assets following its acquisition of leading travel exchange
Via.com, will increase the EbixCash Financial Exchange expanse to
231,500 physical distribution outlets, with an Omni-channel online
digital platform that encompasses leadership in money remittance
(domestic & international), travel, pre-paid & gift cards,
utility payments, etc. In addition, Ebix’s recent joint venture
initiative with Bombay Stock Exchange positions it strongly in
India’s insurance sector.
The addition of this international capability
significantly expands upon Ebix’s overall participation in India’s
remittance channels, and will allow Ebix’s financial exchange to
remit money sent from abroad through multiple partners.
EbixCash is already the largest domestic
remittance exchange in India with domestic remittance volume of
approximately $100 million per month. It 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 through
its travel portal Via.com is also 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.
Transcorp International Limited Chairman and
Managing Director Ashok Aggarwal said, “EbixCash has established a
dominant customer friendly international remittance business in
India with a reach that is many times larger than any other MTSS
player in the marketplace. We genuinely believe that EbixCash is a
logical home for Transcorp MTSS assets, as it complements
EbixCash’s financial exchange portfolio perfectly, opening up
tremendous cross-selling opportunities on both sides. We are
excited about the possibilities this offers for our partners and
customers both.”
Ebix Chairman, President and CEO Robin Raina,
“Following up on other MTSS assets acquisitions in the last few
months, the acquisition of Transcorp International MTSS assets is a
logical step forward in our efforts to expand our presence in the
Financial Exchange markets in India. It will help establish
EbixCash as an undisputed market leader, by leaps and bounds, in
the inward international remittance exchange business. Also, the
consolidation of Transcorp MTSS assets into our existing Financial
Exchange infrastructure will further enhance our operating
margins.”
About Ebix, Inc.
A leading international supplier of On-Demand
software and E-commerce services to the insurance, financial,
e-governance and healthcare industries, Ebix, Inc. provides
end-to-end on-Demand solutions ranging from infrastructure
exchanges, front end & back end enterprise systems, outsourced
administrative & custom software development solutions, and
risk compliance solutions for various entities involved in these
industries.
With 40+ offices across Australia, Brazil,
Canada, India, New Zealand, Singapore, the US and the UK, Ebix
powers multiple exchanges across the world in the field of life,
annuity, health and property & casualty insurance while
conducting in excess of $100 billion in insurance premiums annually
on its platforms. Through its various SaaS-based software
platforms, Ebix employs hundreds of domain specific business and
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
About Transcorp International
Limited
Transcorp International Limited
(BSE:TRANSCOR.BO), is a diversified conglomerate having prominent
interests in International Money Transfer, Foreign Exchange,
Investments, Insurance, and Tours & Travels. Under the aegis of
specific RBI Licenses, Transcorp offers International Money
Transfer and Forex Services from its widespread network consisting
of 40 offices and approximately 7,500 Franchisee locations
across India. For more information, visit the Company’s website at
http://www.transcorpint.com/Money-transfer.htm
About EbixCash
An Ebix Group initiative, EbixCash is emerging
as one of the leading Financial Exchanges in India. With a
‘Phygital” strategy that combines 231,500 physical distribution
outlets to an Omni-channel online digital platform, EbixCash has
established an enterprise financial exchange portfolio that
encompasses leadership in money remittance (domestic &
international), travel, pre-paid & gift cards, utility payments
etc. Ebix’s recent joint venture initiative with Bombay Stock
Exchange positions it strongly in India’s insurance sector.
EbixCash’s portfolio of products can be accessed digitally anywhere
as also across its distribution outlets spread over 5,500+ cities
and towns. For further details, visit 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," "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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