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 one of its Indian subsidiaries has signed the agreement to
acquire Mumbai based Miles Software for an amount of approximately
$19 million, with an additional contingent earn out of up to $8.5
million payable after 2 years.
Miles is India’s Leading wealth and asset
management on-demand software provider to banks, asset managers and
wealth management firms, besides having 300+ financial service
customers across 18 different countries in Europe, Middle East and
South-East Asia.
While being tightly integrated into Ebix’s
on-demand software offerings globally, Miles Software will serve as
Ebix’s Investment, Wealth and Asset Management Division with its
products being interfaced across both EbixCash financial exchanges
and EbixExchange insurance exchanges. All key Miles business
executives have been retained by Ebix with the Miles Founder Milan
Ganatra and his team being entrusted with leading Ebix’s global
efforts in these niche competence areas. Milan will be also become
a key member of the EbixCash senior leadership team in India, to
have an enhanced focus on the global fast-growing wealth and asset
management industry.
In the financial year 2017, Miles had revenues
of $8 million and EBITDA of approximately 8%. Ebix believes that
the business can continue to grow at the rate of 20% 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 8 cents 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. Aarayaa Advisory
Services served as the exclusive financial advisors to Miles
Software.
Key Facts about Miles:
- Founded in 1999, Miles is
headquartered in India, with sales presence in Europe, Middle East
and South-East Asia.
- With more than 300 enterprise
implementations across 18 countries, Miles derives 44% of its
revenues from India and the balance coming primarily from Europe,
Middle East and South-East Asia.
- The Company on-demand solutions
encompass the areas of wealth. portfolio, asset, custody,
collateral and loan management, besides having enterprise cloud
based investment management and investment compliance
solutions.
- The Company’s flagship product
MoneyWare, has been ranked #1 Global Private Banking Solution
player for the third consecutive year by IBS Intelligence, UK in
2018 based on sales clocked globally in the year.
- Miles solutions are already
interfaced with Ebix’s Indus lending based enterprise solution
offerings.
- The Company has a Blue chip
referenceable client base of leading banks, asset managers, wealth
managers and custodians across all its target markets
- Miles’s India customer base
includes leading banks and financial institutions like Kotak
Mahindra Bank, State Bank of India, ICICI Bank, Edelweiss, and
Motilal Oswal etc.
- The Company has a leading presence
in many geographies like UK, Philippines, East & West Africa.
Clients include leading banks like First Abu Dhabi Bank, State Bank
of Mauritius, Land Bank of Philippines, BRITAM and some of the
Largest global Investment/Asset Managers.
"We are immensely pleased to have become a part
of a Company with an extremely rich domain focus and a who’s who
financial institution client base. Ebix today is the only on-demand
Exchange in the world that aspires to bring true convergence
between financial, insurance, asset management, lending and wealth
management,” Milan Ganatra, Founder and CEO of Miles Software said.
“With 7,500+ employees servicing clients in India, Ebix offers us
expansion possibilities that are truly exciting. Ebix’s
expanse across the world and more specifically in North America,
Australia, UK and Brazil has the potential of opening up immense
new opportunities for our products, as we interface them to Ebix
CRM and other Exchange solutions in these markets.”
Milan added, “We strongly believe that there is
great synergy and mutual shared DNA between Ebix and Miles’s focus
on globalization, domain focus and the culture of innovation and
excellence. I am confident that the Miles team has the talent and
ability to take Ebix to even greater heights."
“Miles’s wealth management, asset management,
collateral based lending management and custody businesses
complement Ebix’s existing offerings to financial institutions,
Banks, asset managers and wealth managers across the world. It also
opens up cross selling opportunities for Ebix solutions to Miles’s
customer base in 18 countries,” Ebix Chairman, President and CEO
Robin Raina said. “The addition of Miles to our EbixCash portfolio
not only makes our financial exchange offering even more
comprehensive, but also provides us with a senior management team
that is proven and highly respected in the industry. I look forward
to working with Milan in helping him expand the Miles footprint to
United States, Australia and Brazil, while utilizing our domain
focused sales and relationship oriented folks in these
markets.”
Leadership in India’s Financial Exchange
markets
The addition of the Miles asset management,
portfolio management, custodian services and collateral based
lending management 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 various travel
offerings including the portal Via.com and the luxury travel brand
Mercury, is one of South East Asia’s leading travel exchanges with
over 110,000 distribution outlets and 8000 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.
- Ebix’s recent acquisition of Indus
positions it as a lending technology player who today is the
backbone lending engine for over 100 banking and finance, captive
auto finance, telecom and insurance companies globally.
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, lending 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
About Miles Software
Incorporated in 1999, Miles is India and
Mauritius’s Leading wealth and asset management on-demand software
provider to banks, asset managers and wealth management firms,
besides having 300+ financial service customers across 18 different
countries in Europe, Middle East and South-East Asia. The Company
is currently also working on developing a B2B Wealth Exchange
between wealth managers, distributors and originators using
blockchain technology. For more information, visit the Company’s
website at www.milessoft.com
About EbixCash
An Ebix Group initiative, EbixCash is emerging
as one of the leading Financial Exchanges in India. With a
‘Phygital” strategy that combines 224,000 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:
Aradhanaa Agarwal +91-99300 13188 or
aradhanaa@ebixcash.com
Darren Joseph+1-678 -281-2027 or IR@ebix.com
David Collins or Chris EddyCatalyst Global +1- 212-924-9800 or
ebix@catalyst-ir.com
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