Ebix Expects the Merger to be Immediately Accretive and Generate 15 cents of Additional Diluted EPS in Year One
ATLANTA, GA – February 8, 2011 – Ebix, Inc. (NASDAQ: EBIX or the “Company”), a leading international supplier of On-Demand software and E-commerce services to the insurance industry, today announced the closing of the merger of Atlanta based A.D.A.M., Inc. (NASDAQ: ADAM), with a wholly owned subsidiary of Ebix. The completion of the transaction helps Ebix to further strengthen its Exchange channel in the Health information and services areas for Employers, Benefit Brokers, Hospitals, Search Engines, Media, Healthcare Organizations, Brokers and insurance carriers. The acquisition is expected to be accretive for Ebix shareholders both in the short and long term.
Under the terms of the merger agreement, ADAM shareholders will receive, at a fixed exchange ratio, 0.3122 shares of Ebix common stock for every share of ADAM common stock. In a special shareholder meeting, ADAM shareholders overwhelmingly supported the merger with 99.4% of the total ADAM shareholders' votes cast approving the issuance of shares in the merger. As of the close of trading on February 7, 2011, ADAM's stock no longer trades on the NASDAQ stock market.
In the aggregate, Ebix will pay approximately $944 thousand in cash for unexercised options and issue approximately 3,650,914 shares of Ebix Common Stock pursuant to the merger. This issuance of shares will increase the combined Ebix diluted share count to approximately 42,068,000 shares of Ebix Common stock. The Company also reported that no ADAM options or warrants were left in the business after closing.
The Company also disclosed that –
Complementary Strengths and Synergies
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 tens of billions 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
About A.D.A.M., Inc.
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