ATLANTA, GA – June 05, 2012 – Ebix, Inc. (NASDAQ:EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance industry, today announced that it has signed an agreement to acquire PlanetSoft, Inc. effective the 1st of June 2012. The acquisition is expected to be immediately accretive to Ebix Earnings per Share (EPS). The closing is expected to be completed in the next one week, subject to fulfillment of all regulatory and fiduciary approvals on both sides.
With over 14-years of successful experience, PlanetSoft currently services many of the top 20 Life insurance companies in the United States and India, including industry leaders such as Swiss Re, MassMutual, Liberty Mutual, Manulife Financial, Sun Life Financial, Desjardins and New York Max Life. With approximately 575 employees spread across India and the United States, PlanetSoft is in the business of powering data exchanges that streamline core insurance operations in the areas of client acquisition, underwriting, and distribution management.
Under terms of the agreement, Ebix has acquired all of the outstanding capital stock of PlanetSoft for a purchase price payable as follows: $35,000,000 paid in cash at closing, and $5,000,000 payable in the form of 297,265 shares of the common stock of Ebix issued at the time of closing. The deal will also involve earn-out cash payments to PlanetSoft shareholders, based on specific revenue numbers that are achieved in the next twenty-four (24) months. Ebix funded the purchase using a mix of internal cash reserves and the Bank credit line available to Ebix at Libor plus 1.5%. No financial advisors were involved in the transaction from the Ebix side.
PlanetSoft provides exchange solutions for the Insurance sector in the areas of Agent Licensing and New Business Underwriting. Its key services are as follows –
With 90% of its employees based in four offices in India, PlanetSoft has built a strong mix of offshore and onsite staff with core knowledge of insurance, while providing world-class solutions to its insurance company clients.
Robin Raina, Chairman, president and CEO of Ebix, said, “This is a very strategic acquisition for us since the combination of PlanetSoft and Ebix exchange products will give us the unique ability to converge insurance and investment operations from front end to back end while converging lead generation, CRM, quoting, illustration, research, underwriting, compliance, policy issuance, claims, reinsurance, compensation management, agent appointment etc in an end-to-end transaction enabling straight through processing. That simply has never been done earlier across the world by any software vendor in our industry.”
“Ebix and PlanetSoft shared the common goal of end-to-end processing for the insurance industry. Both the companies are committed to SaaS based exchange services targeted at automating the entire process of insurance across all entities. Both Companies have made strong investments in building world class development & intellectual property rights facilities in India.” PlanetSoft Founder and CEO Sudhir Bajaj said. “With all these commonalities between the two companies, and the fact that our services complemented each other, we felt that PlanetSoft combining with Ebix has the potential of providing the insurance industry with a giant leap forward in the area of straight through processing.”
Robin added, "We are excited to inherit a strong management team from PlanetSoft and welcome them to the Ebix family.”
About Ebix, Inc.
With 30+ offices across Brazil, Singapore, Australia, the US, New Zealand, India and Canada, 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 on its platforms. Through its various SaaS-based software platforms, Ebix employs hundreds of insurance and technology professionals to provide products, support and consultancy to thousands of customers on six continents. Ebix’s focus on quality has enabled it to be awarded Level 5 status of the Carnegie Mellon Software Engineering Institute’s Capability Maturity Model (CMM). With a recent ISO 27001-security certification, the Company also has a ISO 9001:2000 certification for both its development and BPO units in India. For more information, visit the Company’s website at www.ebix.com.
SAFE HARBOR REGARDING FORWARD-LOOKING STATEMENTS
Certain information incorporated herein by reference 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 Part I, Item IA, “Risk Factors”, below, as well as: 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 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 this and other 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.