Ebix to Exhibit Solutions at ACORD Conference in Las Vegas from 24th May to 26th May 2010
ATLANTA, GA – May 21, 2010 – Ebix, Inc. (NASDAQ: EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance industry, announced today that it has acquired Houston-based Connective Technologies, Inc. through an asset purchase transaction. The signing of the binding agreement and the closing of the transaction was completed yesterday. The acquisition is expected to be accretive to Ebix Earnings per Share (EPS). Connective will become a part of the EbixExchange Division of Ebix.
This acquisition marks Ebix’s entry into the largest property & casualty exchange markets in the world. The United States accounts for approximately 38% of the $1.5 trillion premiums conducted in the property and casualty sector worldwide. Independent analysts estimate that approximately $59 billion a year is being spent on paper-based processes in the United States P&C insurance sector. Ebix’s P&C Exchange intends to focus on providing on-demand exchange services for this sector in the United States, while providing end-to-end straight through processing.
Connective Technologies has been a provider of Exchange solutions for the property and casualty insurance industry in the US, specializing in Internet interface solutions for carriers and their agents. Approximately 60 insurance carriers and their agents today utilize Connective’s exchange solutions. The Connective exchange is interfaced successfully to approximately 40 different broker systems in the United States.
Dan Delity, Senior Vice President of EbixExchange said, “Ebix today successfully runs leading P&C exchanges in Australia and New Zealand. We have been contemplating entering the P&C exchange markets in the United States for some time now. We decided to do it through the asset purchase of Connective since they had established themselves in the markets as a solid player by implementing an on-demand solution for approximately 60 carriers. We are excited about this acquisition since it allows us to provide the property & casualty insurance industry with a real alternative to IVANS.”
Delity added, “Connective’s solutions are proven in the industry today. Ebix today commands respect in the United States insurance markets. We believe that putting Connective solutions under the EbixExchange umbrella is likely to result in Ebix being able to convince some of the top property and casualty carriers to switch to EbixExchange.”
Raina said, “The industry needs cutting edge on-demand exchange solutions that are extremely secure and yet robust in their functionality. Our P&C exchange can do all that efficiently while guarantying a 50% or more cost saving to the carriers, over their present spending. Also, we have the ability to deploy this solution virtually in days for hundreds of their agents across 40 different broker systems.”
Raina concluded, “On the financial front, we expect this acquisition to contribute recurring revenues, great operating margins and organic revenue growth to Ebix in 2010 and beyond. During our due diligence review, we were highly encouraged by the response of some of the large carriers to the prospect of Ebix entering the P&C Exchange markets in the United States. We expect to announce the switching of a large property & casualty carrier to our EbixExchange platform soon.”
Ebix considers the size of the acquisition immaterial at present and thus did not disclose the financial details of the transaction. Ebix funded this transaction through internal sources using its own cash reserves. No Ebix shares were issued in the transaction.
Ebix also announced that it would be exhibiting its P&C Exchange solutions at the insurance industry’s premier ACORD conference being held at Las Vegas from 24th to 26th of May 2010.
About Connective Technologies
Connective Technologies, Inc. is an Exchange for the property and casualty insurance industry, specializing in Internet interface solutions for carriers and their agents. Connective solutions are used by hundreds of brokers and approximately 60 insurance companies including Grange Mutual Casualty Group, Hallmark Insurance, Indiana Farmers, National Mutual, Old Missouri, Omni, Tower Hill Insurance, Western Reserve Group and Ohio Mutual. For more information about Connective solutions, go to http://www.connectivetech.com
A division of Ebix, Inc., EbixExchange is the premier On-Demand Software Exchange that offers products and services that automate, expedite, and improve the process for the life insurance, annuity, property & casualty, and health insurance industries. Seen as a leading developer of electronic Straight Through Processing, EbixExchange currently supports a broad range of insurance agencies, brokerage and clearing firms, and operations centers at over 100 of the leading insurance carriers and their affiliates. EbixExchange products include WinFlex (multi-carrier compliant illustrations), VitalSales Suite (research/quotes/forms), AnnuityNet (annuity order-entry), LifeSpeed (advanced application processing), EbixHealth (employee benefits and claims) and various P&C exchanges across the world.
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 industry.
With 30+ offices across Singapore, Australia, the US, New Zealand, Brazil, 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). Ebix has also earned 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.
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