ATLANTA, GA – June 21, 2013 – Ebix,
Inc., (NASDAQ: EBIX), a leading international supplier of On-Demand
software and E-commerce services to the insurance industry, today announced
its Board of Directors has approved a $100 million common stock repurchase program.
Shares of common stock may be purchased under the program from time to time
on the open market and in privately negotiated transactions, subject to customary
legal, contractual and regulatory considerations. Ebix intends to complete this
new $100 million stock repurchase authorization within the next 24 months. The
Company will fund the repurchases through cash on hand and future cash flow
from operations. Ebix currently has approximately $35.5 million of cash on hand
worldwide. During 2012, the Company generated free cash flow of $65.3 million,
excluding the cash used to acquire businesses during the year. The decision
to authorize this share repurchase program has been made as part of the Company’s
continuing evaluation of strategic options to enhance value for shareholders.
The Company believes that recent allegations published in
the media and elsewhere are without merit, and that a share repurchase program
represents an attractive use of its cash resources. The Board of Directors is
confident that the Company is executing on an effective business strategy, which
is generating both strong free cash flow and a robust contract pipeline.
With a recurring revenue base of approximately 80%, Ebix
works collaboratively with clients to develop innovative technology strategies
and solutions that address specific business challenges. The Company has a strong
balance sheet, a world class sales force, market leading products
and is focused on continuing to serve its thousands of customers.
About Ebix, Inc.
A leading international supplier of On-Demand software and E-commerce services
to the insurance industry, Ebix, Inc., (NASDAQ: EBIX) provides end-to-end solutions
ranging from infrastructure exchanges, carrier systems, agency systems and BPO
services to custom software development for all entities involved in the insurance
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. For more information, visit the
Company’s website at www.ebix.com
We have made forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, in this press release, including, without
limitation, statements regarding the Company’s planned stock repurchase
program, recurring revenue base, free cash flow and contract pipeline. The words
"believes," "anticipates," "plans," "expects,"
"intends," "estimates," "seeks," "may"
and similar expressions are intended to identify forward-looking statements.
These forward-looking statements involve known and unknown risks, uncertainties
and other factors that could cause our actual results, performance and achievements,
to differ materially from any future results, performance or achievements expressed
or implied by such forward-looking statements.
Although we presently believe that the plans, expectations
and results expressed in or suggested by the forward-looking statements are
reasonable, all forward-looking statements are inherently subjective, uncertain
and subject to change, as they involve substantial risks and uncertainties beyond
our control, including, without limitation, our ability to execute repurchases
of our shares on attractive terms, as well as the other risks and uncertainties
discussed in our reports and other public filings with the SEC. This list of
risks and uncertainties, however, is only a summary of some of the most important
factors and is not intended to be exhaustive. New factors emerge from time to
time, and it is not possible for us to predict the nature, or assess the potential
impact, of each new factor on our business. Given these uncertainties, we caution
you not to place undue reliance on these forward-looking statements. We undertake
no obligation to update or revise any of our forward-looking statements for
events or circumstances that arise after the statement is made, except as otherwise
may be required by law. Additional information regarding risk factors that may
affect us or these forward-looking statements is included under the caption
"Risk Factors" in our Annual Report on Form 10-K for the fiscal year
ended December 31, 2012 and subsequent filings with the SEC.\
Steven Barlow, IR, 678-281-2043 or firstname.lastname@example.org
Aaron Tikkoo, IR, 678 -281-2027 or email@example.com
Andy Brimmer / Tim Lynch / Andrew Siegel
Joele Frank, Wilkinson Brimmer Katcher