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.
Recently 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%.
Currently, EbixCash sees domestic remittance volumes of approximately $100 million per month. It announced that it had completed the process of acquiring India-based foreign exchange service provider CentrumDirect Limited for $175 million (last month). Last November, It stated that it had acquired online travel portal Via.com for $75 million. The acquisition was not just to enter the travel space but also to add another 100,000 retail outlets to EbixCash.
Ebix has also acquired the money remittance business of Transcorp International Limited, for approximately $7.4 million, through its Indian subsidiary EbixCash, in an all-cash deal.
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 allow them 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.”
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.