JOHNS CREEK, GA – July 20, 2018 – Ebix, Inc. (NASDAQ: EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance, financial, healthcare and e-learning industries, today announced that it has acquired India based Indus Software Technologies Pvt. Ltd. (Indus), a global provider of enterprise Lending software solutions to financial institutions, captive auto finance and telecom companies, for approximately $29 million including $5 million of contingent earn out.
Indus will be tightly integrated into Ebix’s Financial Exchange EbixCash offering in India and abroad, with key Indus business executives becoming an integral part of the combined EbixCash senior leadership. The acquisition of Indus will increase the employee strength of Ebix in India by 900 to approximately 7,200 employees.
In the financial year 2017, Indus had revenues of $22 million and EBITDA of approximately 17%. Ebix believes that the business can continue to grow at the rate of 12% to 15% plus annually with operating margins of 30% or more, once fully integrated. Ebix expects the acquisition to be immediately accretive to its earnings and forecasts $0.19 in increased Diluted EPS, once the acquisition is fully integrated over the next 6 months. Ebix funded the acquisition using its internal cash reserves and did not use any investment bankers for the transaction. KeyBanc Capital Markets Inc. served as the exclusive financial advisors to Indus Software and its principal owners Black Dragon Capital.
Founded in 1990, Indus offers a specialized suite of products and technology solutions for Banking & Finance, Telecom and Insurance Industries. With more than 150 enterprise lending implementations in 15 languages across 50 plus countries, Indus derives 56% of its revenues from India and the balance coming primarily from Europe, Middle East and South-East Asia.
With enterprise solutions that are designed for international markets with multi-currency, multi-lingual and multi-organizational support, Indus technology today forms the backbone lending engine for over 100 banking and finance, captive auto finance, telecom and insurance companies globally. Indus today has an impressive base of global blue-chip customers and partners –
Indus solutions tend to form the backbone of Enterprise loan life cycle management for a Lender with modules that encompass retail and corporate origination, loan management and collections for areas as diverse as auto, mortgage, credit card, personal loans, education loans, consumer loans and Gold loans etc. The Company’s solution set includes functionalities like Commissions & Incentives, Workflow management, Mobility, Lead management, Collateral management, Dealer Funding etc. besides its end-to-end Lending suite. Built on modern J2EE database independent architecture that can easily be ported to any handheld device, Indus solutions can be implemented as an integrated end-to-end solution or as independent modules capable of interfacing with legacy or existing host systems.
Ebix Chairman, President and CEO Robin Raina said, “We have always believed that Lending is a must have functionality for any leading end-to-end Financial Exchange. Accordingly, in our vision plan for EbixCash with respect to the area of Lending, we see three opportunities: one - powering the technology for Lenders in any industry; two – creating a person-to person lending exchange that can be available over the web, e-wallets, mobile phones, white label Corporate intranets and EbixCash outlets to consumers; three – lending services for our EbixCash outlets that allows them the power to borrow and expand their business with EbixCash. The acquisition of Indus is a step in the direction of accomplishing the first step of that vision plan.”
“Indus provides us now with the ability to interface a Person to Person (P2P) Lending exchange into the back-end systems of top lenders in the market place and move data seamlessly across front-end and back-end systems. This will also allow Indus clients to access the 260,000+ physical distribution expanse of EbixCash, along with our strong corporate and electronic network, and be a lending provider to our vast consumer network in India, through a future EbixCash P2P Exchange.” Robin added, “Indus also fits in well with our goals of expanding the EbixCash network globally, since it provides us with an international customer base across Europe, Middle East and South-East Asia.”
Louis Hernandez Jr., founder, managing director and CEO of Black Dragon Capital, said, “We’re very proud of the work we have done with the Indus team to create a high-growth and profitable company that is a perfect fit for Ebix’s performance driven and growth culture. Ebix is acquiring outstanding talent and a clear market leader with a global brand and distribution, that will help further its growth while adding to Ebix’s comprehensive product suite. It’s great for the customers, employees and partners at Indus and is very exciting for everybody. Overall, Black Dragon Capital accomplished what it does best, which is to help a company accelerate its growth.”
The addition of the Indus to the EbixCash portfolio further strengthens Ebix’s leadership in India’s Financial Exchange markets:
Founded in 1990, Indus offers a specialized suite of products and technology solutions for Banking & Finance, Telecom and Insurance Industries. The Company’s innovative enterprise level loan origination, receivables management and debt management solutions are trusted by over 100 plus clients spread across 50 plus countries. With deep domain understanding and through its learnings from industry best practices, the Company has continued to enhance products to deliver the most relevant solutions to its clients. Headquartered in Pune and with development centers in Chennai and Pune, the Company supports 150 plus implementations across the globe. For more information, visit: www.indussoft.com
With 50+ offices across 5 continents, Ebix, Inc., (NASDAQ: EBIX) endeavors to provide On-Demand software and E-commerce services to the insurance, financial, healthcare and e-learning industries. In the Insurance sector, the Company’s main focus is to develop and deploy a wide variety of insurance and reinsurance exchanges on an on-demand basis, while also, providing Software-as-a-Service ("SaaS") enterprise solutions in the area of CRM, front-end & back-end systems, outsourced administrative and risk compliance, across the world.
With a "Phygital” strategy that combines 260,000 physical distribution outlets in many Southeast Asian Nations (“ASEAN”) countries, to an Omni-channel online digital platform, the Company’s EbixCash Financial exchange portfolio encompasses leadership in areas of domestic & international money remittance, Forex, travel, pre-paid & gift cards, utility payments, etc., in an emerging country like India. The Company’s Forex Exchange has an approximate 70% market share of India’s airport Foreign Exchange business encompassing 25 international airports like Delhi, Mumbai, Bangalore, Chennai and Kolkata International airports, while conducting over 1 million transactions per annum. EbixCash, through its travel portal Via.com, is also one of Southeast Asia’s leading travel exchanges with over 110,000 distribution outlets and 8,000 corporate clients processing over 24.5 million transactions every year. For further details, visit www.ebixcash.com
Through its various SaaS-based software platforms, Ebix employs thousands of domain-specific 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
As used herein, the terms “Ebix,” “the Company,” “we,” “our” and “us” refer to Ebix, Inc., a Delaware corporation, and its consolidated subsidiaries as a combined entity, except where it is clear that the terms mean only Ebix, Inc.
The information contained in this Press Release contains forward-looking statements and information within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. This information includes assumptions made by, and information currently available to management, including statements regarding future economic performance and financial condition, liquidity and capital resources, acceptance of the Company's products by the market, and management's plans and objectives. In addition, certain statements included in this and our future filings with the Securities and Exchange Commission ("SEC"), in press releases, and in oral and written statements made by us or with our approval, which are not statements of historical fact, are forward-looking statements. Words such as "may," "could," "should," "would," "believe," "expect," "anticipate," "estimate," "intend," "seeks," "plan," "project," "continue," "predict," "will," "should," and other words or expressions of similar meaning are intended by the Company to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are found at various places throughout this report and in the documents incorporated herein by reference. These statements are based on our current expectations about future events or results and information that is currently available to us, involve assumptions, risks, and uncertainties, and speak only as of the date on which such statements are made.
Our actual results may differ materially from those expressed or implied in these forward-looking statements. Factors that may cause such a difference, include, but are not limited to those discussed in our Annual Report on Form 10-K and subsequent reports filed with the SEC, as well as: the risk of an unfavorable outcome of the pending governmental investigations or shareholder class action lawsuits, reputational harm caused by such investigations and lawsuits, the willingness of independent insurance agencies to outsource their computer and other processing needs to third parties; pricing and other competitive pressures and the Company's ability to gain or maintain share of sales as a result of actions by competitors and others; changes in estimates in critical accounting judgments; changes in or failure to comply with laws and regulations, including accounting standards, taxation requirements (including tax rate changes, new tax laws and revised tax interpretations) in domestic or foreign jurisdictions; exchange rate fluctuations and other risks associated with investments and operations in foreign countries (particularly in Australia, UK and India wherein we have significant operations); equity markets, including market disruptions and significant interest rate fluctuations, which may impede our access to, or increase the cost of, external financing; and international conflict, including terrorist acts.
Except as expressly required by the federal securities laws, the Company undertakes no obligation to update any such factors, or to publicly announce the results of, or changes to any of the forward-looking statements contained herein to reflect future events, developments, changed circumstances, or for any other reason.
Readers should carefully review the disclosures and the risk factors described in the documents we file from time to time with the SEC, including future reports on Forms 10-Q and 8-K, and any amendments thereto. You may obtain our SEC filings at our website, www.ebix.com under the "Investor Information" section, or over the Internet at the SEC's web site, www.sec.gov.