JOHNS CREEK, GA – May 23, 2016 – Ebix, Inc. (NASDAQ: EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance, financial and healthcare industries, announced today that its Board of Directors has approved a three-for-one split of the Company's common stock, pending shareholder approval of an increase in the Company’s authorized shares. The stock split is intended to enhance the long-term trading liquidity of Ebix’s common stock, particularly given the company’s active and ongoing accretive share repurchase program.
The stock split would represent the third 3-for-1 stock split that Ebix has authorized and executed over the past decade. The previous stock splits took place on October 9, 2008 and on January 4, 2010.
Robin Raina, Ebix Chairman of the Board, President & CEO said, "The stock split is intended to further improve the trading liquidity and accessibility of Ebix common shares, making them more accessible both to institutions and individual shareholders."
The Company anticipates a record date of approximately July 15, 2016. Provided the shareholders approve the increase in the Company’s authorized shares, each shareholder of record at the close of business on such date will receive two additional shares for every outstanding share held on the record date, and trading is likely to begin on a split-adjusted basis on or about August 1, 2016.
With 32.6 million shares outstanding as of May 19, 2016 after counting the full quarter effect of all share repurchases till date, the Company has decided to seek an increase in the Company’s authorized common shares from 60 million to 200 million, in order to effect the stock split and to provide flexibility for any future M&A activity. A proxy statement for the special meeting will be sent to shareholders in late June. The Company anticipates holding this meeting during the last week of July, for shareholders of record on June 27, 2016. The increase in authorized shares must be approved by shareholders at this Special Meeting for the stock split to be effective.
A leading international supplier of On-Demand software and E-commerce services to the insurance, financial and healthcare industries, Ebix, Inc. 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