ATLANTA, GA – November 3, 2014 – Ebix, Inc. (NASDAQ: EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance, financial and healthcare industries, today announced that it has acquired Connecticut based VERTEX, Incorporated, with the goal of establishing a non-aligned worldwide strategic management consulting practice targeted at the insurance, healthcare and financial industries all across the world.
Under the terms of the agreement, Ebix has acquired all of the outstanding capital stock of VERTEX, Incorporated. Ebix funded the purchase using a mix of internal cash reserves and the bank credit line available to Ebix, with no Ebix shares being issued. Ebix expects the transaction to be immediately accretive while generating 10 to 15 cents annually in earnings per share (EPS).
The Company also announced that it has retained the entire senior management team led by Steven Wilson, founder and president of VERTEX, who will continue to lead the business under the new name of Ebix Consulting as Senior Vice President.
VERTEX is a specialized software and services firm focused primarily on the life and annuity insurance marketplace since 1991. VERTEX provides technology and operational consulting, Straight Through Processing services, and Software-as-a-Service (SaaS) products to life and annuity insurers, health insurers, brokers and distributors, insurance technology vendors, and service providers. VERTEX services include Business and IT Consulting, Migrations, Conversions, Integrations and Business Process Automation. VERTEX generates over 80 percent of its revenue from life and annuity insurers, of which 47 percent comes from blue-chip tier-one companies.
“Over the last 23 years, VERTEX, Incorporated, has built a strong reputation for its extensive domain knowledge, technical expertise and ability to innovate while delivering and deploying exceptional insurance software,” Steven Wilson, founder and president of VERTEX, said. “In Ebix, we found a Company who shared our vision of providing strategic management consulting to the industry while maintaining our independence and making our services available to competing vendors, insurers, brokers and service providers.”
Steven added, “Ebix is a great fit for us for several other reasons. Ebix knows our market and we cross paths with Ebix all the time. We have many clients in common, Ebix understands our business model, and most importantly is well aware of our stellar subject matter expertise and reputation in the industry. Our services and products complement each other, opening up new business opportunities for both - our clients and us.”
Robin Raina, President and CEO of Ebix, Inc. said, “VERTEX is recognized in the life and annuity insurance marketplace for its innovative products and services that have helped both define standards and connect competing service providers, to allow them to interact with insurers on common interfaces. We are excited to have access now to the entire spectrum of these leading solutions as well as the extensive strategic consulting expertise of VERTEX’s 190 employees.”
Raina added, “Under its new name, Ebix Consulting, VERTEX will retain the non-aligned nature of its products and services while it grows its footprint globally. Ebix Consulting will have access to the full range of hundreds of high-quality developers and business analysts already employed by Ebix, as well as the sales and marketing infrastructure to seek large on-site and offshore turnkey projects. We recognize that the insurance industry values domain-specific management consulting knowledge, and thus see this as a first step toward establishing a worldwide strategic consulting practice.”
No financial advisors were involved in the transaction from the Ebix side, and Sherman & Company LLC served as financial advisors to VERTEX for the transaction.
Located in New Britain, CT, VERTEX has been providing innovative products and business and technical solutions to the financial and insurance services industry since 1991. VERTEX services include Business and IT Consulting, Migrations, Conversions, Integrations and Business Process Automation. VERTEX focuses on the life insurance and annuity segments and has gained a global reputation for expertise in these specialties. VERTEX is recognized by our growing list of prestigious clients as an industry leader. For more information, visit the Company’s website at www.vertexincorporated.com
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 risk compliance solutions to custom software development for all entities involved in the insurance industry.
With 40+ offices across Australia, Brazil, Canada, India, New Zealand, Singapore, the US and the UK, 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.